Which one of the following is not one of the major reasons for a manager to unde
ID: 2759502 • Letter: W
Question
Which one of the following is not one of the major reasons for a manager to understand cost behavior?
Useful for evaluating divisional performance
Useful for implementing flexible budgeting
Useful for conducting break-even and contribution margin analysis
Useful for writing a report to shareholders
A.Useful for evaluating divisional performance
B.Useful for implementing flexible budgeting
C.Useful for conducting break-even and contribution margin analysis
D.Useful for writing a report to shareholders
Explanation / Answer
D. Useful for writing a report to shareholders, cost behaviour is not required for reporting of financial statement ( Statement of profit and loss , Balance sheet , cash flow Statement) to shareholder in US GAAP
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