A Traditional GAAP Income Statement Does Not Help Managers to Predict

Multiple Choice

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

A) The GAAP statement is based on cost function rather than cost behavior.
B) The GAAP statement is based on classification rather than function.
C) The GAAP statement is based on cost behavior rather than cost function.
D) The GAAP statement is based on function rather than classification.