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.

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Definitions:

Age of Revolution

A period from approximately 1774 to 1849 during which numerous significant revolutions occurred across the globe, including the American, French, and Industrial Revolutions.

French Revolution

A period of far-reaching social and political upheaval in France and its colonies beginning in 1789, which fundamentally changed the course of French history.

Mexican Revolution

A major armed struggle from 1910 to 1920 that transformed Mexican culture and government, leading to the end of the Porfiriato and the establishment of a constitutional republic.

Sugar Act

A British law enacted in 1764 that imposed a tax on sugar and molasses imported into the American colonies, leading to widespread discontent.