Which Statement Is Not Correct

question 2

Multiple Choice

Which statement is not correct?

• A)cost objects are the reasons for performing activities
• B)cost object describes the work performed in a firm
• C)activities cause costs
• D)cost objects create a demand for activities

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Definitions:

Future Cash Flows

Estimated amounts of money expected to be received or paid out by an entity in the future as a result of financial transactions or business operations.

Net Book Value

The value at which an asset is carried on a balance sheet, calculated as the asset's original cost minus accumulated depreciation and impairments.

Accelerated Depreciation

A method of depreciation where assets lose value at a faster rate in the initial years of their life.

Straight-Line Depreciation

A method of calculating the depreciation of an asset that allocates an equal amount of depreciation each year over the asset's useful life.