Which of the Following Statements Is False

question 74

Multiple Choice

Which of the following statements is false?

• A) A standard cost is more accurate than a budgeted cost.
• B) A standard is a unit amount.
• C) In concept standards and budgets are essentially the same.
• D) The standard cost of a product is equivalent to the budgeted cost per unit of product.

---

Definitions:

Setup Cost

The expenses incurred to prepare equipment or processes for manufacturing an order or batch of goods, typically involving preparation time and materials.

Inventory Holding Cost

Expenses related to storing unsold goods, including warehousing, security, insurance, and deterioration or obsolescence.

Product Structure Tree

A hierarchical representation of all the components and sub-components required to build a product, showing the relationship between the parts and the quantities needed.

DVD Format

A digital optical disc storage format used for storing high-quality video, audio, and other data.