Melissa Uses a Sunscreen with an SPF Rating of 20

question 157

Multiple Choice

Melissa uses a sunscreen with an SPF rating of 20, which means that

• A) her sunscreen contains 20 different ingredients to block ultraviolet radiation.
• B) she can stay in the sun for 20 minutes without getting tanned or burned.
• C) she is protected from the full range of ultraviolet radiation.
• D) she can stay in the sun 20 times longer without getting burned than if she did not use it.

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Definitions:

Selling Price

The sum a purchaser spends to acquire a good or service from a vendor.

Absorption Costing

A cost accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Cost-plus Pricing

A pricing tactic in which the final sale price is established by applying a predetermined markup on top of the product's purchase cost.

Return on Investment

A financial ratio measuring the gain or loss generated on an investment relative to the amount of money invested.