Which of the Following Statements Is Not True

question 69

Multiple Choice

Which of the following statements is not true?

• A)Comparability means using different accounting principles from year to year within a company.
• B)Faithful representation means information must be neutral, complete, and free from material error.
• C)Relevant accounting information must be capable of making a difference in a user's decision.
• D)For accounting information to be relevant, it must have timeliness.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, depreciation on equipment, and factory rent.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a selected activity base such as machine hours or labor hours.

Direct Labor-Hours

The full extent of hours dedicated by employees who are directly integrated into the production process.

Manufacturing Overhead

All indirect factory-related costs incurred during the production process, excluding direct materials and direct labor costs.