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:

Written Offer

A formal proposal presented in written form, detailing the terms under which the offeror is willing to engage in a transaction or agreement.

Complete

Fully executed or finished with all necessary components or steps fulfilled.

Material Terms

These are the essential conditions and clauses in a contract or agreement that affect its operation, including any rights, obligations, and duties of the parties involved.

Contract Here

An agreement between parties that is made in a specific location or jurisdiction.