Which of the following statements about business unit reporting is/are true?
i. Business unit reports distinguish between costs that are controllable by the business unit manager and costs that are beyond the influence of the business unit manager.
ii. These statements must be presented in an absorption-costing format.
iii. Business unit reporting shows profit and loss statements for the company as a whole and for its major business units.
A) i and ii
B) All of the given answers
C) i and iii
D) ii and iii

Question

Quizplus · Accepted Answer

Statement i is true as business unit reports often separate costs that can be controlled by the business unit manager from those that cannot. Statement ii is false as there is no requirement that these statements must be presented in an absorption-costing format. Statement iii is also true as business unit reporting typically shows both the company's overall profit and loss, as well as the profit and loss for each major business unit. Therefore, the correct answer is option C, as it includes the true statements i and iii.

Which of the Following Statements About Business Unit Reporting Is/are