Which of the Following Statements Would Be False Regarding Application

question 71

Multiple Choice

Which of the following statements would be false regarding application of the variance analysis model to nonmanufacturing costs?

• A) The basic framework used for manufacturing is also used for nonmanufacturing costs.
• B) Merchandising and service organizations focus on marketing and administrative costs to measure efficiency and control costs.
• C) The need for analysis of price and efficiency variances in nonmanufacturing settings is increasing.
• D) Service organizations are unable to substitute different types of labor.

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