Segmented Income Statements-Common Mistakes- LO 6-5
Managerial Accounting
Garrison, Noreen, and Brewer
17th Edition
What mistake is made by companies when assigning costs to the segments of the company?
What mistake is made by companies when assigning costs to the segments of the company?
State how each cost is treated on an income statement prepared using the variable costing approach. (direct labor, material, overhead, selling and admin)
Which statement regarding the segment margin is not true?
Asks for the debit entry for gross profit under construction contracts
Asks to classify each as continuous or discrete
Asks which does NOT apply to a seller who is an agent.
Asks which is acceptable way to estimate consideration deemed “uncertain”.
Asks about recognizing revenue over time, which is the indicator
Asks about characteristic for contract for purposes of revenue.
Asks of given answers which is NOT an indicator.