What is the difference between natural and assignable causes of variation?
What will be an ideal response?
Natural variations are those variations that are inherent in the process and for which there is no identifiable cause. These variations fall in a natural pattern. Assignable causes are variations beyond those that can be expected to occur because of natural variation. These variations can be traced to a specific cause.
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Which of the following statements is true if the variable cost per unit increases while the sales price per unit and total fixed costs remain constant?
A) The breakeven point decreases. B) The contribution margin increases. C) The breakeven point remains the same. D) The breakeven point increases.
Which of the following statements is correct regarding disclosure of working papers prepared by a CPA related to tax practice?
A. Working papers may not be transferred to another accountant without the client's permission. B. Working papers may not be turned over to a CPA quality review team without the client's permission. C. Working papers may not be disclosed under a federal court subpoena without the client's permission. D. Working papers may not be disclosed to any third parties without the client's permission.