If a Company Misclassifies a General,selling and Administrative Cost as a Product

question 67

Multiple Choice

If a company misclassifies a general,selling and administrative cost as a product cost in a period when production exceeds sales:

• A) net income will be overstated.
• B) total assets will be understated.
• C) gross margin will be understated.
• D) both net income will be overstated and gross margin will be understated

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Definitions:

Civil Disobedience

is the act of refusing to comply with certain laws, demands, or commands of a government or occupying power, typically in a nonviolent form, as a form of political protest.

Gandhi

Mohandas Karamchand Gandhi, an Indian lawyer, anti-colonial nationalist, and political ethicist, who led the campaign for India's independence from British rule through nonviolent resistance.

Centralized

Organized such that control, decision making, or authority is concentrated in a central location or governing body.

Political Organization

The way in which a society creates and applies laws and policies through structures, institutions, and processes.