Which of the Following Sentences Is Not True

question 112

Multiple Choice

Which of the following sentences is not true?

• A) Actual overhead costs always enter the Work-in-Process account.
• B) The cost of a job includes direct materials, direct labor, and applied overhead.
• C) When a job is complete, it must leave Work-in-Process and be entered into Finished Goods or Cost of Goods Sold.
• D) All of these are correct.
• E) None of these are correct.

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Definitions:

FIFO Costing

An inventory valuation method that assumes the first units produced or acquired are the first ones to be expensed or sold (First In, First Out).

Inventory Value

Inventory value is the total cost or market value of all the goods and materials held by a company intended for sale.

Pretax Income

The amount of income earned by a business before paying taxes, also known as earnings before tax (EBT).

Overstated

When figures or amounts are reported higher than they actually are, potentially misrepresenting the financial condition of a business.