A Traditional GAAP Income Statement Does Not Help Managers to Predict

question 101

Multiple Choice

A traditional GAAP income statement does not help managers to predict the financial results of their decisions.Which of the following is a reason for this shortcoming?

• A)The GAAP statement is based on cost function rather than cost behavior.
• B)The GAAP statement is based on classification rather than function.
• C)The GAAP statement is based on cost behavior rather than cost function.
• D)The GAAP statement is based on function rather than classification.

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Definitions:

HR Demand

This term refers to the projected need for employees in an organization based on its future business activities and strategic goals.

Skills Requirements

The specific skills and abilities that an individual needs to possess in order to perform effectively in a particular job or task.

Multivariate Regression Analysis

A statistical technique used to model and analyze the relationships between multiple independent variables and a single dependent variable.

Dependent Variables

Outcomes or variables in research whose changes are influenced by independent variables.