Which Statement Is Not Correct

question 2

Multiple Choice

Which statement is not correct?

• A)cost objects are the reasons for performing activities
• B)cost object describes the work performed in a firm
• C)activities cause costs
• D)cost objects create a demand for activities

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Definitions:

Revenues

The sum of revenue obtained through the sales of products or services that are central to a company's main activities.

Multiple-Step

An income statement format that separates operating revenues and expenses from nonoperating revenues, expenses, and gains and losses.

Single-Step

An income statement format that consolidates all revenues and gains together and all expenses and losses together, resulting in a single step to determine net income.

Gross Profit

The difference between sales revenue and the cost of goods sold, showing the basic profitability of a company's core business activities.