Which of the Following Examples Would Have as Its Purpose

question 188

Multiple Choice

Which of the following examples would have as its purpose the allocation of costs to motivate employees?

• A) deciding on a selling g price for a product
• B) encouraging sales representatives to emphasize high-margin products
• C) to cost products a a "fair" price under a government contract
• D) to cost inventories for reporting to external parties

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Definitions:

Vertical Integration

The involvement by a company in more than one of the activities in the entire value chain from development through production, distribution, sales, and after-sales service.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Supplier

A supplier is a person or company that provides goods or services to another entity, typically involved in the supply chain.

Traceable Fixed Costs

Fixed costs that can be directly associated with a specific cost object, such as a product, department, or project, and disappear if the cost object is eliminated.