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A traditional GAAP income statement does not help managers predict the financial results of their ...

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A traditional GAAP income statement does not help managers predict the financial results of their ...

A traditional GAAP income statement does not help managers predict the financial results of their decisions. Which of the following is a reason for this shortcoming?

▸ The GAAP statement is based on function rather than classification.

▸ The GAAP statement is based on cost behavior rather than cost function.

▸ The GAAP statement is based on classification rather than function.

▸ The GAAP statement is based on cost function rather than cost behavior.

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Managerial Accounting

Edition: 4^th

Author: Davis

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