Which of the Following Statements Regarding the Uses and Limitations

question 129

Multiple Choice

Which of the following statements regarding the uses and limitations of job costing is true?

• A) Overhead is allocated to match revenues and costs
• B) Most overhead costs are relevant for short-term decisions
• C) Managers frequently assume variable overhead costs are fixed
• D) Overhead costs are not relevant for most short-term decisions

---

Definitions:

Net Cash Provided

The amount of cash generated by a company's operations after accounting for outflows and inflows.

Cash Account

An account that shows the amount of cash a company has on hand or in the bank.

Cash Dividends

Profit distributions paid out by a corporation to its shareholders.

Net Income

The company's overall earnings following the subtraction of all costs, taxes, and expenses from the total income.