Which of the Following Is Not True

question 83

Multiple Choice

Which of the following is not true?

• A)The complexities of ABC have caused many firms to pursue value stream accounting.
• B)Value stream accounting captures costs related to value-added activities within a specified department or activity.
• C)An essential aspect in implementing value stream accounting is defining the product family.
• D)Value stream accounting makes no distinction between direct costs and indirect costs.

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Definitions:

Production Units

This term refers to the quantifiable amount of products manufactured or produced in a given period, serving as a basis for cost allocation and efficiency analysis.

Budgeted Purchases

Estimated amounts allocated for the acquisition of goods or services during a specific budget period.

Inventory Levels

The quantity of goods and materials a company has in stock at any given time.

Sales Representatives

Individuals who represent a company's products or services and are responsible for extending its market reach by securing sales, clients, or contracts.