Question

the predetermined rate is always more accurate It is impossible to ever calculate an actual rate 5 pts Question 29 Which of the following is true regarding a contribution approach income statement? it separates costs into their fixed and variable components and is only used for external reporting purposes it separates costs into product and period costs O it separates costs into their fixed and variable components and is used for internal decision making it contains a gross margin subtotal Question 30 5 pts Discretionary fixed costs represent organizational investments with a multiyear planning horizon and cannot be significantly reduced, even for short periods of time. True O False No new data to save. Last checked at 2:26pm Submit Qui

Answer 1

Ques-29

Ans: It separates costs into fixed and variable components and is used form internal decision making.

Explanation: Contribution approach income statement separates variable costs from fixed costs and serves as a tool in planning and decision making ,it cannot be used for external reporting,it often used by managers internally.

Traditional income statement works by separating product costs from period costs.

Ques-30

Ans: False

Explanation: Committed fixed costs represent organizational investments with a multi-year planning horizon that can't be significantly reduced even for short periods. Whereas, discretionary fixed costs are period specific costs that can be eliminated or reduced without having a direct impact on profitability.