Which Statement Is FALSE

question 114

Multiple Choice

Which statement is FALSE?

• A)A cost may be defined as a sacrifice or giving up of resources for a particular purpose.
• B)Costs are frequently measured by the monetary units that must be paid for goods and services.
• C)Only manufacturing firms need some form of cost accounting.
• D)The first step in a cost accounting system is the collection of costs by some category.

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Definitions:

Perpetual Inventory Records

A method of maintaining real-time records of inventory levels, where updates are made automatically for every sale, return, and receipt of merchandise.

Purchases Discount

Purchases Discount refers to a reduction in the price paid for goods or services if payment is made within a specified period.

Yearly Savings Rate

The percentage of one's income that is saved annually, often used in personal financial planning.

FOB Shipping Point

A term used in shipping contracts to indicate that a buyer must pay for the shipping costs and is responsible for the goods once they leave the seller's premises.