The Statement That Is Incorrect Is

question 15

Multiple Choice

The statement that is incorrect is:

• A)Inaccurate application of overheads to products can lead to the wrong conclusions about the profitability of products.
• B)An indirect cost benefits multiple cost objects.
• C)Direct labour is usually an accurate cost driver for most indirect costs.
• D)By allocating indirect costs an organisation is able to determine the full cost of a cost object.

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Definitions:

Duty Of Care

A legal obligation imposed on an individual requiring that they adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.

Honest Mistake

An error made in good faith without the intention to deceive or cause harm.

Liability For Mistake

A legal principle that holds parties accountable for errors that result in a breach of contract or harm to another party.

Personal Liability

The legal responsibility of an individual to assume financial obligations or compensate for wrongful acts.