A Product Cost Is Composed of the Following

question 101

Multiple Choice

A product cost is composed of the following:

The product sells for $40 and a 15% commission is paid to a salesperson for every unit sold. Management accountants also estimate that storage cost per unit averages $0.75 per unit. What is the full cost of the product?

• A) $14
• B) $22
• C) $28.75
• D) $28.00

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Definitions:

Injury

Physical harm or damage to an individual's body, or harm in legal contexts to someone's rights or reputation.

Mutual Rescission

An agreement between parties to terminate their contract and restore them to their original positions as if the contract had never existed.

Consideration

Consideration is a legal concept referring to something of value promised, given, or received in return to form the basis of a contract.

Services

Activities performed to meet the needs of customers or clients, often in exchange for payment.