Just as a Cost Driver Is Any Factor That Affects

question 63

Multiple Choice

Just as a cost driver is any factor that affects costs,a ________ ________ is a variable,such as volume,that casually affects revenues.

• A)mixed cost
• B)fixed cost
• C)revenue mover
• D)revenue driver
• E)cost factor

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's net income or loss.

Common Stock

This represents units of ownership interest or equity in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Net Income

The sum total of profit a company achieves after removing the costs and tax payments from its income.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair market value of its net assets.