Which of the Following Statements Is False

question 23

Multiple Choice

Which of the following statements is false?

• A) Under variable costing, the income statement is prepared using a contribution margin approach.
• B) Variable costing is not allowed for external financial reporting, but many companies find it useful for internal managerial reports.
• C) Under variable costing, an increase in production increases the amount of profit reported on the income statement, even if the additional units are not sold.
• D) Under variable costing, fixed manufacturing costs are expensed in the period incurred.

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Definitions:

Industrialized Nations

Countries that have undergone industrialization, characterized by significant technological advancement and a shift from agricultural to industrial economies.

Pastoralists

Individuals or groups who raise and tend livestock as their primary means of livelihood, often involving nomadic or semi-nomadic herding practices.

Agricultural Groups

Communities or societies whose primary mode of subsistence is based on crop farming and livestock raising.

Division of Labor

the allocation of different tasks and roles to different individuals or groups in a society, often based on factors such as skill, age, or gender.