A Traditional GAAP Income Statement Does Not Help Managers Predict

question 91

Multiple Choice

A traditional GAAP income statement does not help managers predict the financial results of their decisions because the format of the statement is based on cost function rather than cost behavior.Which of the following is not classified as a cost function?

• A)Product
• B)Sales
• C)Administration
• D)Variable

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Definitions:

Osmoregulation

The process by which organisms maintain the balance of water and electrolytes in their bodies to sustain life.

Marine Invertebrate

Organisms without a backbone living in marine environments.

Freshwater

Water that contains minimal amounts of dissolved salts, found in rivers, lakes, streams, and groundwater, essential for drinking, agriculture, and habitat for many organisms.

Buoyancy

The upward force exerted by a fluid that opposes the weight of an object immersed in it, enabling the object to float or to seem lighter.