which of the follwing is an argument against the sued of direct ( variable )coting and in favor of f

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