Accounting test 1
The difference in revenues between two alternatives is called.
Differential revenue
Using a traditional income statement what equation gives you net income
Gross margin-Total selling and admin Exp.= Net income
Which of the following are differences between the traditional and contribution format to income statements
Tradition income statements focus on cost classifications. Contribution format statements focus on cost behavior. Compared to traditional statements, contribution format statements provide management with a tool to make decision making easier.
The Hight-Low Method
is based on periods where the activity tends to be unusual Uses only two data points
when using the high low method, the change in cost divided by the change in units equals
the variable cost per unit