The major disadvantage of the account classification method is
A) While some cost items will exactly correspond to a fixed or variable cost, other cost items will not.
B) The difficulty associated with implementing it.
C) Small companies may have an expansive account list making the task hard.
D) Incorrectly classifying costs could lead to minor errors in cost estimates.
Correct Answer:
Verified
Q21: Which of the following is not a
Q22: Contribution margin equals revenues less variable costs.
Q24: Contribution margin statements:
A) Can be utilized to
Q25: If fixed costs are $15,000, profit before
Q26: The term "contribution margin" denotes:
A) The value
Q29: In the short run:
A)Most fixed costs are
Q32: The high-low method requires:
A) The identification of
Q33: The change in variable costs is calculated
Q39: The contribution margin statement focuses attention on:
A)Revenues
Q40: Common fixed costs do not relate to
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