Which of the Following Is Not a True Statement

question 79

Multiple Choice

Which of the following is not a true statement?

• A) All costs are controllable at some level within a company.
• B) Responsibility accounting applies to both profit and not-for-profit entities.
• C) Fewer costs are controllable as one moves up to each higher level of managerial responsibility.
• D) The term segment is sometimes used to identify areas of responsibility in decentralized operations.

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Definitions:

Fair Value

The estimated price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.

Trading Securities

Financial assets that a company holds for the purpose of selling them in the short term to generate profit.

Fair Value

An estimated market value of an asset or liability, based on current prices in an active market or valuation techniques.

GAAP

Widely Recognized Accounting Standards; a set of standard accounting practices and rules routinely adhered to for financial reporting purposes.