Nancy Has a Mental Age of 10

question 103

Multiple Choice

Nancy has a mental age of 10. What does that mean?

• A) Nancy is 10 years old.
• B) Nancy has an IQ of 100.
• C) Nancy is an individual who has been capable of intelligent thought for 10 years.
• D) Nancy passed problems that an average 10-year-old would pass.

---

Definitions:

Absorption Costing

A pricing approach that incorporates all costs of production, including direct materials, direct labor, and all manufacturing overheads, both variable and fixed, into the product's cost.

Total Product Cost

This refers to the sum of all costs used to create a product, including direct labor, direct materials, and manufacturing overhead.

Per Unit

A measurement expressing costs, profits, or other economic variables on a per-unit basis.

Variable Costing

A costing method that includes only variable costs (direct materials, direct labor, and variable overhead) in the cost of goods sold, treating fixed costs as period costs.