Which of the Statements Below Is FALSE

question 21

Multiple Choice

Which of the statements below is FALSE?

• A)We can separate short-term and long-term decisions into three dimensions: the length of impact,the cost,and the degree of information gathering prior to the decision.
• B)The longer the impact and the higher the cost associated with a decision,the greater the time and degree for gathering information on choices and the more complex the decision model.
• C)Long-term decisions are called capital budgeting decisions and are typically viewed as decisions that have long-term impacts that are not easily reversed or that can be changed only at great cost.
• D)An example of a short-term decision is determining the number of manufacturing facilities that the firm should operate.

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Definitions:

Applied Overhead

Costs related to production that are not directly tied to a specific product but allocated based on a formula or measure.

Machine Hours

A measure of the actual operating time of a machine or piece of equipment, used for costing and manufacturing planning purposes.

Direct Labor

The cost of wages for employees directly involved in the manufacturing or production of goods or services.

Work in Process Inventory

Represents the cost attributed to partially completed goods, which are still being manufactured.