Which of the Following Statements About Trek Bicycles Is FALSE

question 62

Multiple Choice

Which of the following statements about Trek Bicycles is FALSE?

• A)Trek's Eco Design initiative is an example of sustainable procurement.
• B)Trek has an extensive product line of bicycles.
• C)Trek has always been on the cutting edge,using the latest innovations in its designs.
• D)Trek was an early sponsor of Lance Armstrong,who won the Tour de France seven straight years.
• E)Trek's business model has evolved from manufacturing bicycles to marketing other two- and four-wheeled vehicles,such as motorcycles and all terrain vehicles (ATVs).

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Definitions:

Direct Materials

Materials that can be directly linked to the production of a product and are essential components of the final product.

Fixed Costs

Charges that do not fluctuate with production or sales volume, such as property leases, payroll, and insurance policies.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period.

Unit Product Cost

The total cost to produce one unit of a product, including direct materials, direct labor, and manufacturing overhead.