Which of the Following Statements Is True

question 23

Multiple Choice

Which of the following statements is true?

• A) Service firms have little need for determining the cost of their services.
• B) The concept of product costing is relevant only for manufacturing firms.
• C) The cost of year-end inventory appears on the balance sheet as an expense.
• D) Service companies use cost information for planning and control purposes.
• E) Mining and petroleum companies have no inventoriable costs.

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Definitions:

Management Decisions

Choices or judgments made by the management of an organization regarding its operations, strategy, and resource allocation.

Seniority-Based

A system or practice where decisions on promotions, layoffs, and benefits are made based on the length of an employee's service within an organization.

Union-Mandated

Requirements or actions imposed by labor unions, often through collective bargaining or union regulations, that employers must follow.

Management Rights

The prerogatives and authorities held by employers to direct and control business operations, including hiring, work assignments, and discipline.