Which of the Following Statements Is False

question 149

Multiple Choice

Which of the following statements is false?

• A) Both direct and indirect costs can be assigned to a cost object.
• B) Cost drivers are often selected based on the availability of information.
• C) Volume measures are good drivers for fixed overhead costs.
• D) Fixed costs that do not have a definitive cost driver are allocated using an allocation base that distributes a rational share of the cost to each product.

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Definitions:

Labor Market

The marketplace where workers seek employment and employers seek workers, defined by supply and demand for labor.

Marginal Productivity

The additional output that is produced by using one more unit of a factor of production, keeping all other factors constant.

Income Distribution

The way in which a nation’s total income is distributed among its population.

Factor Markets

Markets where services of the factors of production (land, labor, capital) are bought and sold.