Which of the Following Is an Example of Product Differentiation

question 55

Multiple Choice

Which of the following is an example of product differentiation?

• A)Two shampoos differ only in their labels,but consumers pay $0.20 more for the label they recognize.
• B)Sugar can be made from sugar beets or sugar cane,and consumers cannot tell the difference.
• C)Consumers substitute SUVs for cars because SUVs accommodate more passengers.
• D)Mills produce softwood and hardwood,but the two are used for different purposes.

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Definitions:

Conversion Costs

Costs incurred during the transformation of raw materials into finished products, typically including labor and overhead expenses related to the manufacturing process.

Weighted-Average Method

A costing method that averages the costs of goods available for sale during the period for the calculation of cost of goods sold and ending inventory.

Processing Department

A specific unit within a manufacturing facility where a distinct phase of production is carried out, like assembly or packaging.

Cost Per Unit

This refers to the total expense incurred to produce, store, and sell one unit of a product or service.