Which of the Following Statements Is FALSE

question 130

Multiple Choice

Which of the following statements is FALSE?

• A) A job order costing system would be used by manufacturers of custom made products.
• B) A process costing system would be used by manufacturers of commodities, such as flour or sugar.
• C) A service firm would likely use a job order costing system.
• D) A print and copy shop would likely use a process costing system.

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Definitions:

Freight In

The cost of transporting goods into a business, typically considered as part of the cost of goods purchased.

Quantity Discounts

Price reductions given to customers who purchase large quantities of a product, encouraging bulk buying.

Perpetual Inventory System

A process in accounting for inventory that instantly logs purchases or sales via computerized point-of-sale systems and enterprise asset management programs.

Journal Entry

A record in accounting that notes every financial transaction of a business in chronological order.