Which of the Following Statements Is False

question 60

Multiple Choice

Which of the following statements is false?

• A) The data show a clear preference for equity as a source of external financing for the total population of U.S. firms.
• B) Debt as a fraction of firm value has varied in a range from 30-45% for the average firm.
• C) Capital expenditures greatly exceed firms' external financing, implying that most investment and growth is supported by internally generated funds, such as retained earnings.
• D) Firms in growth industries like biotechnology or high technology carry very little debt, whereas airlines, auto makers, utilities, and financial firms have high leverage ratios.

Understand the advantages and disadvantages of volume-based allocation methods versus activity-based costing.

Comprehend how overhead allocation impacts product costing and business decision-making.

Recognize the role of cost objects in different overhead rate methods.

Understand the concept of cost pools and how they are used in overhead allocation.

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Definitions:

Curious

Having a strong desire to learn or know something.

Big Five

A personality model that outlines five broad dimensions of human personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Researchers

Scientists who study the characteristics that make individuals unique and the processes that influence personality development.

Neuroticism

A trait in personality psychology referring to the tendency to experience negative emotions such as anxiety, anger, or depression more frequently and intensely than others.