Suppose That You Are Walking to Work, Alone, and You

question 103

Multiple Choice

Suppose that you are walking to work, alone, and you notice a spooky man crawling on the ground alongside a building, holding a gun. He is clearly up to no good. In which of the following cases would you be MOST likely to do something about it (such as call 9-1-1) ?

• A) No one else around and you are in a rush.
• B) No one else around and you are NOT in a rush.
• C) A lot of other people are around and you are in a rush.
• D) A lot of other people are around and you are NOT in a rush.

---

Definitions:

Manufacturing Cost

The total cost incurred by a company to produce goods, including raw materials, labor, and overhead.

Calculated Selling Price

The calculated selling price is the price at which a product must be sold to cover its costs and achieve a desired profit margin.

Markup

The amount added to the cost price of goods to cover overhead and profit.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated in advance based on estimated costs and activity levels.