Saturday, June 2, 2012

If managers make sell or process further decisions using an incremental revenue/incremental cost approach, which method will show each product

ACCOUNTING

Multiple Choice

If managers make sell or process further decisions using an incremental revenue/incremental cost approach, which method will show each product budgeted to have a positive (or zero) operating income on the resulting budgeted product-line income statement?

a. Sales value at splitoff

b. Estimated NRV

c. Constant gross-margin percentage NRV

d. All of the above methods

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