Which of the Following Statements Is FALSE

question 16

Multiple Choice

Which of the following statements is FALSE?

• A) Economic goods are available in desired quantities at a zero price.
• B) A good is anything that gives satisfaction or happiness to individuals.
• C) Services are intangible goods such as dry cleaning, hospital care, and restaurant meal preparation.
• D) Wants are unlimited and include all material and nonmaterial desires.

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Definitions:

Processing Cost

This is the expense incurred during the operation of converting raw materials into finished products, including labor and overhead costs.

Work in Process

Inventory that includes the materials, labor, and overhead costs for products that are in the production process but not yet complete.

Equivalent Units

A measure used in cost accounting to express the amount of work done on incomplete units in terms of complete units.

First-in

Commonly part of the term "First-in, First-out (FIFO)", a method used in inventory management where the oldest stock is sold first.