Which of the Following Statements Is FALSE

question 20

Multiple Choice

Which of the following statements is FALSE?

• A)Cost-reduction synergies are hard to predict and achieve.
• B)Because the CEOs of small firms receive information so quickly,small firms are often able to react in timely way to changes in the economic environment.
• C)Synergies usually fall into two categories: cost reductions and revenue enhancements.
• D)There may also be costs associated with size.

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Definitions:

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services.

Indirect Materials

Materials used in the production process that are not directly traceable to the finished product, such as lubricants and cleaning supplies used in machinery.

General Journal Entries

Written records of day-to-day financial transactions in a company's general ledger, specifying the date, accounts affected, amounts, and details of transactions.

Factory Payroll

The total compensation owed to employees working in a manufacturing facility, including wages, salaries, and bonuses.