Dreyson Manufacturing Sells a Number of Goods Whose Selling Price

question 94

Multiple Choice

Dreyson Manufacturing sells a number of goods whose selling price is heavily influenced by cost.A recent study of product no.519 revealed a traditionally-derived total cost of $1,019,a selling price of $1,850 based on that figure,and a newly computed activity-based total cost of $1,215.Which of the following statements is true?

• A)All other things being equal,the company should consider a drop in its sales price.
• B)The company may have been extremely competitive in the marketplace from a price perspective.
• C)Product no.519 could be labeled as being overcosted by the firm's traditional costing procedures.
• D)If product no.519 is undercosted by traditional accounting procedures,then all of the company's other products must be undercosted as well.
• E)Generally speaking,the activity-based cost figure is "less accurate" than the traditionally-derived cost figurE.

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Definitions:

Health Psychology

A branch of psychology that focuses on how biological, psychological, and social factors influence health, illness, and healthcare.

Healthy People 2020

A set of goals and objectives aimed at promoting health and preventing disease for American citizens by the year 2020, focusing on various health metrics and public health interventions.

Healthy Life Expectancy

The number of years a person can expect to live in good health, taking into account years lived in less than full health due to disease and/or injury.

Health Habits

The behaviors and practices individuals engage in on a regular basis that affect their overall health and well-being, such as diet, exercise, and sleep patterns.