Which of the Following Statements Is (Are)false Regarding Cost Allocations

question 13

Multiple Choice

Which of the following statements is (are) false regarding cost allocations and product costing? (A) It is easier to determine the individual product cost for a manufacturer than it is for a wholesaler.(B) In general,indirect costs are assigned,while direct costs are allocated.

• 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:

Written Off

Refers to the elimination of an asset's value from a company's balance sheet due to it being unrecoverable or having no further use.

Receivable

Funds that customers owe to a business for products or services already provided but not yet compensated for.

Bad Debt Reserve

An account set aside by a business to cover unpaid debts that are unlikely to be recovered.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.