Which of the Following Statements Is Correct

question 8

Multiple Choice

Which of the following statements is correct?

• A) Total elimination is consistent with the parent company concept.
• B) Partial elimination is consistent with the economic unit concept.
• C) Past accounting standards required the total elimination of unrealized intercompany profit in assets acquired from affiliated companies.
• D) none of these.

Interpret and analyze contribution margin income statements.

Calculate contribution margin per unit, contribution margin ratio, and variable expense ratio.

Forecast net operating income based on changes in sales volume, selling price, variable costs, and fixed costs.

Calculate the margin of safety in dollars and percentage.

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Definitions:

Shared Ideologies

A set of beliefs, values, and ideas that are commonly accepted and upheld by a group or community.

Organizational Behavior

The study of how people interact within groups, particularly in a workplace setting, and the impact of these behaviors on organizational performance.

Cultural Competence

The ability of individuals and organizations to interact effectively with people of different cultures and socio-economic backgrounds.

Public Service

Activities provided by the government or its institutions to citizens, usually aimed at benefiting the public and not generating profit.