The statement that is incorrect is:
A)Inaccurate application of overheads to products can lead to the wrong conclusions about the profitability of products.
B)An indirect cost benefits multiple cost objects.
C)Direct labour is usually an accurate cost driver for most indirect costs.
D)By allocating indirect costs an organisation is able to determine the full cost of a cost object.

Question

Quizplus · Accepted Answer

Direct labour is not an accurate cost driver for most indirect costs as some indirect costs may not be related to labour, such as rent or utilities.

The Statement That Is Incorrect Is