Final answer:
The false statement is that material requisitions authorize the transfer of materials from the production floor to the warehouse, whereas they actually authorize the transfer from the warehouse to the production floor.
Step-by-step explanation:
Material requisitions are internal documents used within a company to authorize the movement of materials from one location to another, usually from a storeroom to the production floor. The false statement among the options provided is "d. Material requisitions authorize the transfer of materials from the production floor to the raw materials warehouse." Typically, material requisitions are used to move items the other direction, that is, from the warehouse to the production floor to be used in the manufacturing process. Material requisitions serve as a key part of inventory and cost control mechanisms within the cost accounting system by providing a paper trail for the consumption of materials.
Option e. Material requisitions are routinely linked to a bill of materials is correct because the bill of materials lists all parts and materials necessary to construct a product, which aligns with the information provided on material requisitions. Options a, b, and c are also correct as they refer to material requisitions being computerized, a common source document, and containing information useful to the cost accounting department.