Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

3.46 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

option D is correct It treats the cost of unused capacity as a pe... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles Volume II

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

16th Canadian edition

1259261433, 978-1260305838

More Books

Students also viewed these Accounting questions

Question

=+a) Whether to invest in solar energy companies.

Answered: 1 week ago

Question

explain how self-talk works,

Answered: 1 week ago

Question

Describe strategies for building self-confidence.

Answered: 1 week ago

Question

discuss how to improve attentional focus.

Answered: 1 week ago