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:

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Manufacturing Wages

The compensation paid to workers involved in the production and assembly processes within manufacturing industries.

Industrial Country

A nation that has a significant level of industrialization, characterized by a high income per capita and diversified economy.

Demand For Labor

The total amount of labor that employers are willing and able to hire at a given wage rate in an economy.