Which of the Following Statements Is False

question 59

Multiple Choice

Which of the following statements is false?

• A) Strategic cost management focuses on reducing costs as well as strengthening an organization's strategic position
• B) The balanced scorecard is a formalized approach to strategic cost management
• C) The balanced scorecard may include both financial and nonfinancial measures
• D) Cost accounting information used for strategic cost management includes only measures of costs

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which typically reduces the share price.

Par Stock

A system that establishes a minimum level of inventory that must be on hand at all times to adequately serve customer needs.

Cumulative Preferred Stock

A type of preferred stock that entitles shareholders to receive dividends in arrears before any dividends can be distributed to common stockholders.