Technical Analysts Feel That Financial Accounting Statements Lack Information,or Report

question 40

Multiple Choice

Technical analysts feel that financial accounting statements lack information,or report it in a way that makes comparisons difficult.Which of the following does not constitute a problem?

• A) Detailed information concerning sales and expenses by product line.
• B) Statements of change in financial position.
• C) Alternative ways of reporting expenses.
• D) Alternative ways of reporting assets and liabilities.
• E) The availability of psychological and nonquantitative variables.

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Definitions:

Overhead Rates

Rates used to allocate overhead costs to products or service units, typically calculated by dividing total overhead costs by some base such as labor hours or machine hours.

Designer Hours

The amount of time spent by designers on a project, often considered for billing or costing purposes.

Staff Hours

Staff hours refer to the total number of hours worked by employees over a specific period.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products based on a predetermined formula, typically involving estimated costs and activity levels.