Which of the Following Statements Is(are)false? (A)Operations Costing Accounts for Material

question 60

Multiple Choice

Which of the following statements is(are) false? (A) Operations costing accounts for material costs like job costing and conversion costs like process costing.(B) An automobile manufacturer is more likely to use an operations costing system than a process costing system.

• A) Only A is false.
• B) Only B is false.
• C) Both A and B are false.
• D) Neither A nor B is false.

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Definitions:

Marginal Cost

The expenditure associated with creating one more unit of a good or service.

Market Equilibrium

A situation in which the supply of an item is exactly equal to its demand, leading to a stable price for the item in the marketplace.

Negative Externality

A cost suffered by a third party due to an economic transaction that they were not involved in, often without compensation.

Externalities

External impacts of an economic activity on unrelated third parties, which can be either positive or negative.