Which of the Following Statements Is NOT True

question 28

Multiple Choice

Which of the following statements is NOT true?

• A) Judgements need to be made in determining profit.
• B) Attempts are made to measure incomplete transactions.
• C) The impact of transactions is recognised when cash is received or paid.
• D) Estimates are made of certain balance sheet items.

---

Definitions:

Manufacturing Overhead Cost

Indirect costs related to the production process, such as factory utilities, that cannot be traced directly to specific products.

Job-Order Costing System

A costing method used when products or services are produced upon specific customer orders, allowing for detailed tracking of costs for each job.

Unit Product Cost

The total expense incurred in creating a product, divided by the number of units produced.

Allocation Bases

Criteria or variables used as a foundation to distribute or assign costs among different cost objects in a fair and systematic manner.