Which of the Following Statements Is False

question 149

Multiple Choice

Which of the following statements is false?

• A) Both direct and indirect costs can be assigned to a cost object.
• B) Cost drivers are often selected based on the availability of information.
• C) Volume measures are good drivers for fixed overhead costs.
• D) Fixed costs that do not have a definitive cost driver are allocated using an allocation base that distributes a rational share of the cost to each product.

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Definitions:

Cocktail Party Effects

The ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as if at a noisy party.

Inattentional Blindnesses

A psychological phenomenon where an individual fails to perceive an unexpected stimulus in plain sight when their attention is focused on another task or aspect of their environment.

Evolutionary Psychology

A contemporary evolutionary perspective used in the social and natural sciences to scrutinize psychological structures.

Neurology

The branch of medicine concerned with the study and treatment of disorders of the nervous system.