The Conceptual Framework for Financial Accounting and Reporting Consists of Which

question 141

Multiple Choice

The conceptual framework for financial accounting and reporting consists of which three main components?

• A)Goals,Concepts,and Exceptions.
• B)Objective,Codes,and Guidelines.
• C)Objective,Elements,and Concepts.
• D)Concepts,Principles,and Practices.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or volume of output.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, providing a basis for operational planning.

Operating Profit

Earnings before interest and taxes (EBIT), representing the profit a company makes from its operations after subtracting operating expenses from revenue.

Sales Mix

The proportion of different products or services that make up the total sales of a company.