_____ Treats Alternative Products, Divisions, or SBUs as Though They

question 91

Multiple Choice

_____ treats alternative products, divisions, or SBUs as though they were stock investments, to be bought and sold using financial criteria.

• A) Portfolio management
• B) GE planning grid
• C) Total profit approach
• D) Return-on-investment approach
• E) None of the above

Analyze the impact of changes in activity level on fixed and variable costs within a flexible budget.

Calculate and interpret variances related to materials, labor, and overhead costs.

Identify the responsibilities associated with various cost variances.

Determine the components and calculations involved in creating a flexible budget.

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Definitions:

Sum-Of-The-Years'-Digits Method

A method of accelerated depreciation calculating annual depreciation expense based on the sum of the years' digits of an asset's useful life.

Double-Declining-Balance Method

An accelerated depreciation method that expenses more of an asset’s cost closer to the beginning of its usable life.

Depreciable Asset Accounting

The accounting process that involves allocating the cost of a tangible asset over its useful life.

Depreciation Expense

The portion of the total cost of a depreciable asset that is allocated as an expense to the income statement in a given period.