You Are Assigned to a Team Responsible for Reviewing the Financial

question 14

Essay

You are assigned to a team responsible for reviewing the financial statements with lower-level departmental managers.Some of your team members want to use the absorption costing income statement generally distributed by the accounting department.You believe a variable costing income statement will be more appropriate to use in explaining items to lower-level managers.Your team has requested more information on the variable costing format.
Required:
Write a memo to your team members explaining why you believe the variable costing income statement should be used.

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Definitions:

Interviews

Interviews refer to a formal conversation where questions are asked and answers are given, commonly used in the process of hiring new employees or gathering information.

Audience

The group of people for whom a piece of writing or a presentation is intended, whose interests and characteristics influence the content and style.

Audience Analysis

The process of understanding the characteristics, needs, and expectations of the people for whom you are creating content or messages.

Accounting System

A systematic process of recording, measuring, and communicating financial information about an entity.