Select the Incorrect Statement Regarding the Use of Average Unit

question 56

Multiple Choice

Select the incorrect statement regarding the use of average unit costs.

• A) Average costs should be calculated for a sufficiently long time period to capture seasonal fluctuations in costs.
• B) Average costs are often more relevant for decision making than are actual costs.
• C) Average cost information can help managers evaluate performance of the company or departments in the company.
• D) Cost averaging should be used only for fixed costs, and not for variable costs.

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Definitions:

Polygamy

The practice of marrying multiple spouses simultaneously, recognized in some cultures and religions but illegal in many countries.

Deseret

A provisional state proposed by Mormon settlers in what is now Utah in the mid-19th century, reflecting their aspiration for a degree of autonomy and governance according to their beliefs.

Family Farms

Agricultural operations that are owned and run by families, rather than corporations, often passed down through generations, and play a key role in the production of food on a local or small scale.

Gold Mining

The act or process of extracting gold from the earth, which can involve various methods including panning, sluicing, dredging, hard rock mining, and by-product mining.