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:

Straight Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Average Accounting Rate of Return

A method to estimate the profitability of investments, calculated by dividing the average annual profit by the initial investment cost.

Straight-Line Depreciation

A scheme for dividing the expenditure of a solid asset over its life span in equal yearly quotas.

Asset

Anything of value owned by an individual or a corporation that can be used to produce positive economic value.