All of the Following Are Reasons That Managers Track Revenues

question 38

Multiple Choice

All of the following are reasons that managers track revenues and costs using a job costing system except:

• A)Managers use the information to record product costs as period costs.
• B)Managers want to know if individual jobs are profitable.
• C)Managers compare actual costs with estimated costs throughout the project to identify unexpected changes as early as possible.
• D)Managers assess the accuracy of original cost estimates.
• E)None of the answer choices is correct.

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Definitions:

Financing Activities

Transactions and events that affect the equity and long-term liabilities of a company, often reflected in the financing section of the cash flow statement.

Operating Activities

Activities that relate to a company's primary operations, including revenue and expense transactions that affect the net income.

U.S. GAAP

United States Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Investing Activities

Transactions involving the acquisition or disposal of non-current assets, such as property, plant, and equipment, included in a company’s cash flow statement.