Which of the Following Statements Is True of Costs Associated

question 68

Multiple Choice

Which of the following statements is true of costs associated with goods for sale?

• A) Information-gathering technology increases the reliability and timeliness of inventory information and increases the costs related to inventory.
• B) Opportunity costs are not recorded in financial accounting systems because they are not a significant component in several cost categories.
• C) The costs of receiving and inspecting the items are included in the purchase orders are ordering costs.
• D) Opportunity costs are recorded in financial accounting systems but are a not significant component in several cost categories.

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Definitions:

Financial Income

Income generated through investments or other financial instruments, distinct from operational or business income.

Deferred Tax Asset

An accounting term representing taxes that have been overpaid or deferred for future periods, potentially reducing future tax liabilities.

Pretax Accounting Income

The income of a business before any tax is deducted, often used in financial reporting and analysis.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income, varying according to income level and tax laws.