Which of the Following Statements Is False

question 100

Multiple Choice

Which of the following statements is false?

• A) Information for some costs cannot easily be obtained from the accounting information system.
• B) Useful cost information is rarely available from the accounting information system.
• C) The accounting system design affects the availability of useful cost information.
• D) The nature of cost information affects its usefulness for decision-making.

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Definitions:

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs, excluding fixed overhead.

Net Operating Income

A measure of a company's profitability from its core business operations, excluding deductions of interest and taxes.

Variable Costing

A costing method that includes only variable manufacturing costs in product costs, treating fixed manufacturing overhead as a period expense.

Unit Product Cost

The comprehensive expenditure involved in creating a single product unit, encompassing direct materials, direct labor, and assigned overhead costs.