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:

Manufacturing Overhead Costs

Indirect costs associated with manufacturing, including costs related to running the factory that cannot be directly traced to specific units produced.

Expected Activity

Anticipated level of operations or production, based on forecasts or trends, which can influence budgeting and planning processes.

Departmental Overhead Rates

Specific overhead rates applied to different departments within a company, calculated to allocate overhead costs more accurately.

Overreliance On Volume

The high dependency on sales volume to drive profit, risking profitability if volume decreases.