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:

Cholera

An infectious disease caused by ingesting contaminated water or food, characterized by vomiting, severe dehydration, and diarrhea, and can be lethal if not treated promptly.

Malnourished

A condition resulting from insufficient intake of nutrients.

Social Sanction

Punitive measures or actions taken by a social group to enforce norms and rules, aimed at controlling behavior.

Execution

The act of carrying out a plan, order, or decision; in legal terms, it often refers to the carrying out of a death penalty against a person legally condemned to death.