b. pertains to subunits of the entity prepared only once a year to subunits of the entity and may be very detailed. by the requirements of generally accepted accounting principles. 13 Manageri al accounting reports can be described as a. general-purpose. b. macro-reports. c. special-purpose. d. classified financial statements. 14. What activities and responsibilities are nof a. Planning b. Controlling c. Constraining d. Directing associated with management's functions? An increase in the level of activity will have the following effects on unit costs for variable and fixed costs: 15. a. Increases b. Remains constant c. Decreases d. Remains constant Why is identification of a relevant range important? Decreases Remains constant Remains constant Decreases 16. a. It is required under GAAP b. Cost behavior outside of the relevant range is not linear, which distorts CVP analysis. c. It directly impacts the number of units of product a customer buys. d. It is a cost that is incurred by a company that must be accounted for. 17. Which is the true statement? a. In a CVP income statement, costs and expenses are classified only by function. b. The CVP income statement is prepared for both internal and external use. c. The CVP income statement shows contribution margin instead of gross profit. d. In a traditional income statement, costs and expenses are classified as either variable or fixed. 18. Accounting generally has the responsibility for