Which Statement Is Not Correct

question 100

Multiple Choice

Which statement is not correct?

• A) general ledger creates a new cost record upon receipt of a work order from production planning and control
• B) cost accounting updates the cost record with data gathered from the materials requisition
• C) general ledger posts summary information about the manufacturing process based on a journal voucher prepared by cost accounting
• D) cost accounting computes variances and applies overhead to individual cost records

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Definitions:

Economies Of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Monopolist

A solo seller in a market who has significant control over the pricing and availability of a unique product or service.

Profit-Maximizes

The method or approach of modifying production and pricing to secure the maximum achievable profit.

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, protecting existing firms from new entrants.