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:

Manufacturing Overhead Applied

The allocation of estimated manufacturing overhead costs to individual products or job orders based on a predetermined overhead rate.

Sales Salaries Expense

The total cost incurred for salaries, wages, and commissions paid to sales personnel, reflecting a company's investment in its sales force.

Work in Process

Inventory consisting of items that are in the process of being produced but are not yet finished goods.

Direct Materials Cost

The cost of raw materials directly used in the production of goods, easily traceable to the final product.