A handfull of Managerical Accounting Questions part 1?

A handfull of Managerical Accounting Questions part 1?
These are my last few out of 250! Any help would be appreciated. I just can't think anymore! 11 Select the incorrect statement regarding the relationship between cost behavior and revenue. A) A pure variable cost structure offers higher potential rewards. B) A pure variable cost structure offers more security if volume expectations are not achieved. C) In a pure fixed cost structure, when revenue increases by $1, so do profits. D) In a pure fixed cost structure, the unit selling price and unit contribution margin are equal 13. Select the incorrect statement regarding the contribution margin income statement. A) The contribution margin approach for the income statement is acceptable for external reporting. B) Contribution margin represents the amount available to cover fixed expenses and thereafter to provide profit. C) The contribution margin approach requires that all costs be classified as fixed or variable. D) Assuming no change in fixed cost


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Chosen Answer
Flyer:  Question 11: A) is incorrect. Since variable costs increase with volume, a pure variable cost structure offers less potential than a pure fixed cost structure. Question 13: A) is incorrect. GAAP does not accept the Contribution Margin approach. D) was not completely shown. B)&C) are correct.
2007-12-20 14:44:31