Which of the Following Is Not a True Statement

question 90

Multiple Choice

Which of the following is not a true statement?

• A)Real estate ownership represents one of the best hedges against inflation.
• B)Poor location can cause a piece of real estate property to go down in value.
• C)There are many factors to consider before investing in real estate.
• D)There is no reason to evaluate a real estate investment because real estate always increases in value sooner or later.
• E)Finding a buyer for a piece of real estate can be difficult if loan money is scarce.

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Definitions:

Static Budget

A budget based on a set level of activity and does not change in response to changes in business activity levels during the budget period.

Overhead Costs

Indirect costs incurred in the production process or in the provision of services that cannot be directly tied to a specific product or service.

Overhead Allocation

The process of distributing indirect costs to cost objects such as products, services, or business units.

Variable Overhead

Costs that vary indirectly with production volume, such as utilities or indirect materials.