Which of the Following Statements Is False

question 98

Multiple Choice

Which of the following statements is false?

• A) A cost can be defined as a direct cost if the bookkeeping system can keep track of how much of the cost was consumed by the cost object
• B) Whether a cost is direct or indirect cannot be determined until the cost object has been defined
• C) If the cost object is a batch of 1000 units of production, then factory property taxes could be a direct cost if the bookkeeping system is detailed enough
• D) Some indirect costs might have been considered direct costs if a company had better technology for capturing information

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Definitions:

Budget Deficits

A situation where a government's expenditures surpass its revenues within a specific time period, leading to borrowing or debt accumulation.

Discretionary Fiscal Policy

Government strategies involving adjustments in spending levels and tax rates to influence the overall economy, aimed at stabilizing seasonal or cyclical fluctuations.

Unemployment Insurance

A government program that provides temporary financial assistance to workers who have lost their jobs through no fault of their own.

Corporate Profits Tax

A tax imposed on the profits earned by corporations, factoring in their revenue minus expenses and deductions.