The Statement That Is True with Respect to Current Cost

question 17

Multiple Choice

The statement that is true with respect to current cost accounting is:

• A)Current operating profit is the excess of the current value of the output sold over the current cost of the related inputs.
• B)Gains are recorded only when the assets are disposed of.
• C)Holding gains are not included in current operating profits.
• D)None of the above is true.

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Definitions:

Actual Results

The concrete outcomes or data obtained from actions or operations, compared against planned or predicted results.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity.

Static Budgets

A budget that is created for a single level of activity and does not change in response to variations in business activity levels.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels within a business.