Which of the Following Statements About Materials Is False

question 11

Multiple Choice

Which of the following statements about materials is false?

• A) Acquisitions of materials are normally charged to the Purchases account.
• B) The use of direct materials gives rise to a debit to Work-in-Process Inventory.
• C) The use of indirect materials gives rise to a debit to Manufacturing Overhead.
• D) The use of indirect materials gives rise to a credit to Manufacturing Supplies Inventory.
• E) Direct materials are accounted for in a different manner than indirect materials.

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Definitions:

Combination

A selection of items or elements without regard to the order in which they are selected.

Indifference Curves

Graphical representations in economics showing different combinations of two goods that provide equal satisfaction and utility to an individual.

Utility

A financial concept that denotes the overall pleasure obtained from using a product or service.

Indifference Curve

A graphical representation showing different combinations of two goods that provide a consumer with the same level of satisfaction or utility.