Which of the Following Statements Is True

question 11

Multiple Choice

Which of the following statements is true?

• A) Indirect costs must be allocated based on a single plant wide rate.
• B) Manufacturing overhead costs are individually assigned to products.
• C) Managers cannot wait until the end of the accounting period for product cost information.
• D) Managers can choose to wait until the end of the accounting period to allocate manufacturing overhead costs.

---

Definitions:

Transport-ready

A term used to describe goods or items that are prepared and packed for shipping.

Magnuson-Moss Act

A federal law enacted in 1975 designed to protect consumers from deceptive warranty practices, applying primarily to consumer products.

Written Warranty

A formal, written promise offered by a manufacturer or seller to the purchaser of goods, guaranteeing the quality or performance of a product over a specified period.

Limited Warranty

A warranty that covers only specific parts of a product or specific types of defects for a set period of time.