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which of the follwing is an argument against the sued of direct ( variable )coting and in favor of full ( absorption) costing ?
A Absorption costing overstate the balance shee value of inventories
B Variable factory overhead is a period cost
C fixed manufacturing overhead is difficult to alloacated properly
D fixed manfacuting overhead is necessary for the production of a product
The manager of a profit center should not be responsible for which of the follwing types of decesion ?
A Deciding which supplier should be used for the purchase of direct material
B Eastblishing the number of employees that will need to work each day
C Deciding wther or not tehir segment should purchase additional machinery
D deciding whether or noy to accept a special orer from a customer
Residual income is a better for the perdormance evaluation of an investment center manager than return on investemnt becasue :
A The problem associated with measuring the asset base are elimiated
B capital budging projects in the best interest of the comoany will not be rejected by investment center manager
C Only the gross book value of assets needs to be calculated
D residual income doest not icrease as assets are depreciated
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