Ecob Corporation Uses the Absorption Costing Approach to Cost-Plus Pricing

question 203

Multiple Choice

Ecob Corporation uses the absorption costing approach to cost-plus pricing as described in the text to set prices for its products. Based on budgeted sales of 19,000 units next year, the unit product cost of a particular product is $16.00. The company's selling and administrative expenses for this product are budgeted to be $250,800 in total for the year. The company has invested $440,000 in this product and expects a return on investment of 14%.The selling price based on the absorption costing approach for this product would be closest to:

• A) $59.21
• B) $29.20
• C) $32.44
• D) $18.24

Recognize the emergence and characteristics of cranial nerves in relation to brain structures.

Compare structural differences between human and sheep brains.

Describe the physical separations within the brain's cerebral hemispheres.

Understand the continuity between different parts of the brainstem and the spinal cord.

---

Definitions:

Production

The process of creating goods and services through the combination of labor, materials, and technology.

Lead Time Reduction

A strategy aimed at reducing the time taken from initiating a process to its completion, often used to enhance operational efficiency.

Cost-Saving

A reduction in expenses that increases net income and cash flow, which can be achieved through various methods like improving efficiency or negotiating better terms with suppliers.

Processed Item

An item that has undergone a series of actions or steps to bring it to a specified state, often referring to manufactured or packaged goods.