An Income Statement Presented in a Functional Format Is Not

question 180

Multiple Choice

An income statement presented in a functional format is not very helpful in managerial decision making because

• A)It does not show which expenses are fixed and which are variable.
• B)It does not show which expenses are direct and which are indirect.
• C)It does not show which expenses are product costs and which are period costs.
• D)It does not show which expenses are common and which are allocated.

---

Definitions:

Real People

Individuals or actual human beings, as opposed to characters in a story or fictional entities.

Organizational Culture

The values, behaviors, and shared vision that contribute to the social and psychological environment of a business or organization.

Visible Artifacts

Tangible or overt expressions of an organization's culture, such as dress codes, office layout, and rituals.

Corporate Culture

The shared values, beliefs, and practices that shape the behaviors and attitudes of an organization's members.