Tick Tock, a Small Retailer of a Quality Alarm Clock

question 102

Multiple Choice

Tick Tock, a small retailer of a quality alarm clock, sells its product based on a 35 percent markup of cost. If the firm's product costs are approximately $133, what is the selling price?

• A) $138
• B) $198
• C) $180
• D) $289

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Definitions:

Activity-Based Costing

An accounting method that assigns costs to products and services based on the activities and resources that go into producing them.

Time-Driven

refers to a methodology where tasks or processes are estimated and evaluated based on the time they take to complete.

Activity-Based Costing

A pricing strategy that recognizes activities conducted in a company and apportions the cost of each activity across all services and products, reflecting their real consumption.

Receiving Calls

The process of answering incoming telephone calls, often associated with customer service or technical support departments.