Thursday, November 3, 2011

When analyzing the change in operating income, the productivity component

ACCOUNTING

Multiple Choice

When analyzing the change in operating income, the productivity component

a. calculations are similar to the sales-volume variance calculations.

b. compares the change in output price with the changes in input prices.

c. will report a large positive amount when a company has successfully pursued the cost leadership strategy.

d. isolates the change attributed solely to an increase in the quantity of units sold.

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