Which of the Following Statements Is Correct

question 118

Multiple Choice

Which of the following statements is correct?

• A) The overhead charged to inventory at the balance sheet date can be understated if the salaries of administrative personnel are inadvertently or intentionally charged to indirect manufacturing overhead.
• B) When jobs are billed on a cost-plus basis, revenue and total expenses are both affected by charging labor to incorrect jobs.
• C) Payroll is a significant portion of inventory for retail and service industry companies.
• D) The valuation of inventory is affected if the direct labor cost of individual employees is improperly charged to the wrong job or process.

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Definitions:

Ancient Greeks

Refers to the people of Greece and their civilizations that flourished from the 8th century BC to the end of antiquity.

Flash Mob

A group of people who assemble suddenly in a public place, perform an unusual act for a brief time, then quickly disperse, often for the purposes of entertainment or satire.

Four Humors

An ancient and obsolete medical theory that suggested the body is comprised of four fluids that influence health and temperament.

Abnormal Behavior

Actions or patterns of activity that deviate significantly from what is considered typical or normal within a certain culture or society, which may or may not be indicative of a psychological disorder.