Which of the Following Is a Reason Why Accounting,and Accountants,can

question 10

Multiple Choice

Which of the following is a reason why accounting,and accountants,can be considered very powerful?

• A) Emphasis on profitability measures provides support to profitable companies which may not be worthy of support under other measures
• B) Provision of purported objective information provides users with a source of power to drive changes to a corporation's behaviour
• C) The output of the accounting process impacts on many decisions which can result in transfers of funds, and therefore wealth
• D) All of the given options are correct

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Definitions:

Variable Selling Expense

Expenses that fluctuate in direct proportion to the number of sales, like sales commissions and freight fees.

Shipping Costs

Expenses associated with the delivery of goods from the manufacturing point to the customer or distribution center.

Variable Manufacturing Cost

Costs that fluctuate with the level of production output, such as raw materials and direct labor.

Fixed Manufacturing Cost

Overheads that do not change with the level of manufacturing output, including salaries of permanent staff and rent.