The Statement That Is Not Correct Is

question 53

Multiple Choice

The statement that is not correct is:

• A) A loss is incurred when income < expenses.
• B) A profit is earned when income > expenses.
• C) A profit is earned when income < expenses.
• D) A loss is incurred when expenses > income.

---

Definitions:

Plantwide Overhead Rate

A single overhead absorption rate used throughout a manufacturing plant for allocating indirect costs to products.

Allocation Base

A factor used to distribute costs among different departments, products, or activities in a systematic and rational manner.

Budgeted Plantwide Overhead

An estimate of the total overhead costs to be allocated across the whole plant or company, used for budgeting and costing purposes.