Which of the Following Is False

question 28

Multiple Choice

Which of the following is false?

• A)Incremental analysis identifies the probable effects of management decisions on future earnings.
• B)In incremental analysis, total fixed costs will always remain constant under alternative courses of action.
• C)The process used to identify the financial data that change under alternative courses of action is called incremental analysis.
• D)Incremental costs are always relevant.

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Definitions:

Equivalent Units

A concept in process costing that converts partially completed units into a number of fully completed units, facilitating cost calculation.

Conversion Costs

Expenses incurred in the process of converting raw materials into finished products, typically including labor and overhead.

Processing Department

An organizational unit where work is performed on a product and where materials, labor, or overhead costs are added to the product.

Work in Process Account

An account that tracks the costs of unfinished goods in the manufacturing process at any given time.