What Is Another Term for an Operating Statement or an Earnings

question 80

Multiple Choice

What is another term for an operating statement or an earnings statement?

• A) a cash flow statement
• B) an income statement
• C) a balance sheet
• D) a transaction ledger

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Definitions:

High-Low Method

A method applied in managerial accounting that calculates fixed and variable expenses by assessing the maximum and minimum activity levels.

Least-Squares Regression

A statistical method used to determine and approximate the relationship between variables, minimizing the squared differences between observed and predicted values.

Fixed Cost

Costs that do not vary with the level of production or sales, remaining constant regardless of business activities.

High-Low Method

A technique used in cost accounting to estimate variable and fixed costs by analyzing the highest and lowest levels of activity and their associated costs.