Which of the Following Statements Is (Are)true Regarding the Potential

question 21

Multiple Choice

Which of the following statements is (are) true regarding the potential effects of using reported product costs for decision making? (A) Traditional product costing systems (e.g. ,job and process costing) are designed primarily to accumulate cost information for financial reporting.(B) If a single cost driver is used as the allocation base,applied manufacturing overhead for product costing purposes may lead to inappropriate managerial decisions.

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

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Definitions:

UCC

A collection of legal guidelines known as the Uniform Commercial Code is designed to regulate commercial activities across the United States.

Counteroffer

An offer made by an offeree to the offeror that relates to the same matter as the original offer but proposes a substituted bargain that differs from the one proposed in the original offer.

Statute Of Frauds

A legal doctrine requiring certain types of contracts to be written and signed in order to be enforceable.

Partial Performance

An exception to the statute of frauds in which the performance of portions of an unwritten agreement by one or both parties can constitute proof that an oral contract exists between the parties.