Which of the Following Statements Is False

question 9

Multiple Choice

Which of the following statements is false?

• A) Under conventional costing,product cost distortions will be relatively insignificant if overhead costs are a small proportion of product cost.
• B) Activity-based costing will significantly improve the product cost accuracy where overhead costs are a small proportion of total costs.
• C) Activity-based costing will significantly improve product cost accuracy where there is significant product diversity.
• D) Upstream and downstream costs are often a significant part of a product's costs.

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Definitions:

Heterotrophs

Organisms that cannot produce their own food and rely on consuming other organisms for energy and nutrients.

Organ System

An organized group of tissues and organs that work together to perform a specialized set of functions (e.g., the digestive system or circulatory system).

Mobile

Capable of moving or being moved freely or easily.

Freshwater

Water that contains minimal amounts of dissolved salts, found in rivers, lakes, and streams, supporting a diverse range of plants and animals.