Got Milk Just Because Consumers Live in a Big City Doesn't Mean

question 142

Multiple Choice

Got Milk
Just because consumers live in a big city doesn't mean they can't have fresh milk right from the farm.Many dairy farms,such as Oberweis Dairy and Smith Brothers Farms,offer home delivery of fresh milk,just like in the old days.While some of these services are established and have been around since the 1920s,New York City-based Manhattan Milk started up in 2008.For $20 or more,depending on what is ordered,consumers anywhere in Manhattan can enjoy organic milk,butter,yogurt,and cheese from Pennsylvania Amish farms and eggs from Vermont.Unlike most store-bought milk,theirs is unhomogenized and free from hormones typically given to cows to produce more milk.
-Refer to Got Milk? Manhattan Milk has a high _____ quality because its quality can only be assessed after its use.

• A) experience
• B) credence
• C) cognitive
• D) search
• E) perceptual

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Definitions:

Manufacturing Overhead

Costs associated with the production process that are not directly traceable to a specific product, such as utilities and factory maintenance.

Cost of Goods Sold

The costs incurred directly from manufacturing the goods a company sells.

Overapplied

A situation where the allocated overhead costs in accounting exceed the actual overhead costs incurred.

Underapplied

In cost accounting, it describes a situation where the allocated overhead costs are less than the actual overhead costs incurred.