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) 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.

Both of the statements are false regarding cost allocations and product costing.

Product cost are known as the costs that are incurred to make up a commodity. These costs include labor, materials, supplies, and overhead.  Cost allocation is referred to as the distribution of a cost to respective objects such as products .

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

answer may be d i think