Question
Which of the following statements is true regarding an income statement that recognizes the cost of unused capacity? a). It is generally used for external
Which of the following statements is true regarding an income statement that recognizes the cost of unused capacity?
a). It is generally used for external reporting purposes.
b). It deducts the cost of unused capacity from sales to derive the gross margin.
c). It adds the cost of unused capacity to sales to derive the gross margin.
d). It treats the cost of unused capacity as a period expense in the income statement.
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Fundamental Accounting Principles Volume II
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
1259261433, 978-1260305838
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