Which of the Following Statements Is False

question 29

Multiple Choice

Which of the following statements is false?

• A)Anemia may result when red blood cells aren't produced in sufficient amounts.
• B)The major stimulus for the production of red blood cells is a low oxygen content of the blood.
• C)When red blood cells are lost due to bleeding, anemia may result.
• D)Only a small percentage of hospital patients exhibit anemia.

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Definitions:

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Common Cost

A cost that is incurred to support a number of cost objects but that cannot be traced to them individually. For example, the wage cost of the pilot of a 747 airliner is a common cost of all of the passengers on the aircraft. Without the pilot, there would be no flight and no passengers. But no part of the pilot’s wage is caused by any one passenger taking the flight.

Arbitrarily Allocated

The process of distributing amounts in a somewhat random or subjective manner, often used in allocating costs to different departments or projects without a strict formula.

LIFO Inventory

LIFO inventory is a method of inventory valuation where the most recently produced or purchased items are recorded as sold first, potentially reducing taxes in periods of inflation.