The Owner of a Small Retail Business Asks,"Why Do I

question 83

Essay

The owner of a small retail business asks,"Why do I need cost accountants? My CPA produces financial statements,which are sufficient for me to discover my costs.Look at my Income Statement.I expect sales to increase by 10% next year,so I am planning on a 10% increase in profits.I don't need a cost accountant to tell me that."

Use your knowledge of the concept of differential costs and explain why a cost accountant would question the conclusion that a 10% increase in sales would yield a 10% increase in profit.

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Definitions:

Bugis

An ethnic group primarily found in the Indonesian island of Sulawesi, known for their maritime culture, skilled navigation, and elaborate social structures.

Multiple Genders

The recognition and acceptance of more than the traditional binary genders (male and female), encompassing a broader spectrum of gender identities.

One X Chromosome

A condition typically associated with Turner syndrome, where a female has a single X chromosome instead of the usual two, leading to various developmental and medical issues.

Intersexuality

A term used to describe a variety of conditions where a person is born with reproductive or sexual anatomy that doesn’t seem to fit the typical definitions of female or male.