Which of the Following Statements Is False

question 100

Multiple Choice

Which of the following statements is false?

• A) Information for some costs cannot easily be obtained from the accounting information system.
• B) Useful cost information is rarely available from the accounting information system.
• C) The accounting system design affects the availability of useful cost information.
• D) The nature of cost information affects its usefulness for decision-making.

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Definitions:

Cost Reconciliation Report

A financial document used to reconcile and explain the differences between the cost of beginning and ending inventories in the manufacturing process.

Equivalent Units

A concept in cost accounting used to estimate the amount of finished goods produced from raw materials and partial productions.

Units Transferred Out

In a production or manufacturing process, this refers to the number of units completed and moved out of a process or department during a given period.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during the period.