Which of the Following Methods Is Not Acceptable for Disclosure

question 32

Multiple Choice

Which of the following methods is not acceptable for disclosure under the SEC's rules?

• A) the CEO's letter to the shareholders
• B) tabular information
• C) sensitivity analysis
• D) VAR
• E) none of the above

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Definitions:

Period Costs

Costs that are not directly tied to the production of goods and are expensed in the accounting period they are incurred, such as sales and administrative expenses.

Prime Cost

The combined costs of raw materials and direct labor involved in the production of a product.

Manufacturing Overhead

Refers to all the indirect costs associated with the production process, such as utilities, maintenance, and salaries of supervisors that are not directly tied to the creation of a product.

Administrative Costs

Expenses related to the general operation of a business, including salaries of executive staff, office supplies, and utilities.