For Costs That Accountants Cannot Directly Trace to Products or Services,accountants

question 43

Multiple Choice

For costs that accountants cannot directly trace to products or services,accountants use ________ or ________.

• A)cost-allocation methods; leave costs unallocated
• B)cost-budgeting methods; ignore remaining costs
• C)sensitivity analysis; financial planning models
• D)financial planning models; post-audits

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Definitions:

Variable Interest Enterprise

An entity in which an investor holds a controlling interest that is not based on a majority of voting rights.

Consolidated Financial Statements

Financial statements that combine the financial information of a parent company with its subsidiaries into one comprehensive document.

Recognizes Gain or Loss

Refers to the process of recording in the financial statements the income or expense resulting from a transaction or event.

Intercompany Transactions

Transactions that occur between two different entities within the same corporate group.