Under FASB Rules, a Material Loss Contingency Must Be Disclosed

question 87

True/False

Under FASB rules, a material loss contingency must be disclosed (but not accrued) if it is "reasonably possible."

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Definitions:

Relevant Range

The scope of operations in which the premises regarding the behavior of variable and fixed costs hold true.

Cost Formula

An equation or method used to predict the cost associated with a certain level of activity or production volume.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, highlighting how much contribution towards fixed costs and profit is made per unit sold.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and sales commissions.