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Problem 1: Which of the following statements refers to management accounting information?
a. It primarily measures and records business transactions
b. The reports are generally delayed and historical
c. There are no regulations governing the reports
d. The reports are audited so they can be used in confidence by potential investors
Problem 2: Which one of the following is a variable cost for an insurance company?
a. rent
b. sales commissions
c. property taxes
d. amortization of office equipmen
Calculate the firm's break-even point in units of production and predict the firm's profitability if volume is 1,200 units.
What cost information would be relevant to a decision to drop the product that would not be relevant to a decision to increase a production run by 100 units?
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