A Worksheet Should Be Viewed As

question 126

Multiple Choice

A worksheet should be viewed as:

• A)A financial statement to be distributed to investors.
• B)A financial statement to assist managers in making managerial decisions.
• C)A tool to assist accountants in making end-of-period adjustments and in preparing financial statements.
• D)A tool to assist auditors in determining that all transactions have been properly recorded throughout the period.

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Definitions:

Absorption Costing

A method of accounting that incorporates both variable and fixed manufacturing expenses into the pricing of a product.

Variable Costing

A costing method in which only variable production costs are assigned to inventory and cost of goods sold, excluding fixed manufacturing overhead.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, culminating in net income or loss.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted.