Which of the Following Statements Is False

question 43

Multiple Choice

Which of the following statements is false?

• A) Money can always function as a store of purchasing power, even if its value is relatively unstable.
• B) The ease with which an asset can be exchanged for money or other assets is referred to as liquidity.
• C) Credit money is any circulating medium which has little intrinsic value relative to its monetary value.
• D) In the future, electronic funds transfer systems may be used to such an extent that a virtually checkless society may result.

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Definitions:

Fixed Factory Overhead

Regular, consistent costs associated with operating a manufacturing facility that do not fluctuate with production volume.

Direct Labour

The cost of wages for workers directly involved in the manufacture of products or the delivery of services.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as factory rent and salaries of permanent staff.

Variable Manufacturing Overhead

Variable manufacturing overhead includes all production costs that change with the level of production output and are not direct materials or direct labor, such as utilities for the manufacturing facility.