Which of the Following Statements Is Not True

question 36

Multiple Choice

Which of the following statements is not true?

• A)Both U.S.GAAP and international financial reporting standards (IFRS)require the use of the lower-of-cost-or-market rule to value inventories.
• B)U.S.GAAP defines market value as replacement cost.
• C)IFRS uses net realizable value with no upper or lower limits imposed.
• D)Write-downs of inventory can be reversed in later periods under U.S.GAAP.

Understand the basic principles and operations of batch and continuous processes.

Identify and differentiate between centralized and distributed control systems.

Grasp the concepts of on/off control, including its advantages and limitations.

Recognize the role and functionality of HMI graphic terminal software within industrial processes.

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Definitions:

Manufacturing Overhead

Costs associated with the production process that are not directly traceable to a specific product, such as utilities and factory maintenance.

Cost of Goods Sold

The costs incurred directly from manufacturing the goods a company sells.

Overapplied

A situation where the allocated overhead costs in accounting exceed the actual overhead costs incurred.

Underapplied

In cost accounting, it describes a situation where the allocated overhead costs are less than the actual overhead costs incurred.