The Principal Task of the FASB Is to

question 110

Multiple Choice

The principal task of the FASB is to

• A)be a link between the business community and the Securities and Exchange Commission (SEC).
• B)establish GAAP in the United States.
• C)audit each public company's financial statements and records.
• D)act as a counsel and advocate for business in its dealings with the government,particularly,but not solely,to the SEC.
• E)review financial statements,so as to ensure adherence to GAAP.

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Definitions:

Variable Cost

Expenses that change in proportion with the level of activity or production volume, such as materials costs or sales commissions.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business over a certain period, such as rent, salaries, and loan payments.

High-low Method

A technique in managerial accounting used to estimate variable and fixed costs by analyzing the highest and lowest levels of activity.

Variable Cost Per Unit

The cost that varies with the level of output or activity, calculated on a per-unit basis.