Which of the Following Statements Is Not True

question 82

Multiple Choice

Which of the following statements is not true?

• A) Virtually all of Honda's sales (autos, motorcycles, generators, lawn mowers) are based on its outstanding engine technology.
• B) Intel focuses on microprocessors.
• C) Michelin focuses on tires.
• D) Firms such as 3M establish goals for profitability from new products.
• E) Dell Computers provides fast delivery to customers, but, in return, customers may only select from a limited choice of hardware configurations.

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Definitions:

Finished Goods Inventory

Finished goods inventory consists of items that have completed the manufacturing process and are ready to be sold to customers, representing a final stage in product inventory.

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to each unit of inventory, based on the cost of goods available for sale and the number of units available.

Equivalent Units

Equivalent units are a concept in cost accounting used to assign costs to partially completed goods, converting them into the amount of finished goods units they represent.

Direct Materials Cost

The expenditure on raw materials that are directly involved in the production of a good or service.