Which of the Following Statements Is False

question 19

Multiple Choice

Which of the following statements is false?

• A) One approach charging direct materials to a job is to use a standard price, regardless of the cost of different purchases made
• B) One approach to charging direct materials to a job is to use replacement cost
• C) Replacement cost is equal to the cost initially paid for stock
• D) The average price could be used in charging direct materials to a job

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Definitions:

Investing

The process of distributing funds with the aim of earning a return or profit.

Operating

Refers to the functioning or management of operations within a business or computer environment.