Which of the following statements is (are) false regarding cost allocations and product costing?
(A) It is easier to determine the individual product cost for a manufacturer than it is for a wholesaler.
(B) In general, indirect costs are assigned, while direct costs are allocated.
A) Only A is false.
B) Only B is false.
C) Both of these are false.
D) None of these is false.

Question

Quizplus · Accepted Answer

Explanation: Statement A is false because it is generally easier to determine individual product costs for a wholesaler than for a manufacturer due to the complexity of manufacturing processes. Statement B is false because direct costs are typically assigned directly to a product, while indirect costs are allocated.

Which of the Following Statements Is (Are) False Regarding Cost