Which of the Following Statements Is True

question 145

Multiple Choice

Which of the following statements is true?

• A)Indirect costs must be allocated based on a single plant wide rate.
• B)Manufacturing overhead costs are accumulated in cost pools and then assigned to products.
• C)Managers cannot wait until the end of the accounting period for product cost information.
• D)Managers can choose to wait until the end of the accounting period to allocate manufacturing overhead costs.

---

Definitions:

Cash Inflow

Money received by a business from various sources, including sales, investment income, and financing, contributing to its cash pool.

Project Analysis

The process of evaluating the viability, stability, and profitability of a project or endeavor before committing resources to it.

Capital Cost Allowance

A tax deduction in Canada that allows businesses to write off the cost of physical assets over time.

Canadian Tax Law

The laws and regulations that define how taxes are calculated, collected, and enforced in Canada, covering income, corporate, sales taxes, and more.