Variable Costing Net Operating Income Is Usually Closer to the Net

question 19

True/False

Variable costing net operating income is usually closer to the net cash flow of a period than is absorption costing net operating income.

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Definitions:

Safeguards

measures or mechanisms put in place to protect against unforeseen, undesired, or unauthorized access to or modification of information and systems.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and disclose the results in a transparent manner.

Answerability

The quality or state of being responsible, especially to explain or justify one's actions to someone who has the right to ask for such explanations.

Liability

Legal responsibility for one's actions or the obligation to compensate for harm caused to others, enforceable by civil legal processes.