Which of These Statements Concerning the Determination of the Full

question 89

Multiple Choice

Which of these statements concerning the determination of the full cost of a cost object is not true?

• A) direct costs are traced via source documentation
• B) overheads are included
• C) indirect costs are allocated via the use of a cost driver
• D) full cost includes only manufacturing costs

---

Definitions:

Undesired Outcome

A result or consequence that deviates negatively from what was intended or expected.

Increased Efficiencies

Improvements that result in a higher output of goods or services for the same or lower input of resources, often through better management practices, technology, or processes.

Lower Quality

Lower quality refers to a product or service that does not meet the expected standards or specifications, often leading to customer dissatisfaction or increased returns.

Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.