The people who rely most exclusively on the information in a company's audited financial statements are

Question content area bottom

Part 1

A.

operating managers.

B.

shareholders.

C.

the accounting staff.

D.

senior management.

E.

auditors.

2..Which of the following is a fixed cost with respect to units produced in a factory?

Question content area bottom

Part 1

A.

direct material costs

B.

utilities cost for the building

C.

monthly rent payment for the building

D.

electrical expenses

3.Which of the following statements about using the equation method to determine the

break-even

point is TRUE?

Question content area bottom

Part 1

A.

Revenue in the equation includes only operating revenues plus fixed costs.

B.

Operating income in the equation assumes that fixed costs are nil.

C.

Operating income in the equation is set equal to nil.

D.

Operating income in the equation is set equal to the target income for the year.

E.

The number of units required to reach the

break-even

point tends to be higher (as it incorporates total costs) using this method than when using the contribution margin method.

4.