Which of the Following Statements Is Incorrect

question 43

Multiple Choice

Which of the following statements is incorrect?

• A)Full costs are useful in decision-making, because this approach focuses on future costs.
• B)The use of full costs is criticised, because it focuses on past costs.
• C)Full costing can lead to incorrect decision-making, because it can distort figures.
• D)Actual costs do not always follow the direction that the recovery rate may suggest.

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Definitions:

Renewable Energy

Energy derived from natural sources that are replenished at a faster rate than they are consumed, such as solar, wind, and hydro power.

High-Efficiency Systems

Systems or processes designed to operate at maximum productivity with minimum wasted effort or expense.

Common Measures Bias

The distortion that arises when the same measurement instruments or approaches are used across different situations or contexts.

Balanced Scorecard

An approach to strategic planning and management that aligns operational activities with the organization's vision and strategy, improves communication across all levels, and evaluates the organization's success in reaching strategic goals.