Which of the Following Is Not a Reason Why Alternative

question 18

Multiple Choice

Which of the following is not a reason why alternative methods have not gained acceptance or been formally implemented?

• A) The arguments for the alternative methods were not logical.
• B) There appeared to be more interest when inflation was a problem than when it was not.
• C) Some alternative models were likely to incur significant costs, negative economic consequences and impacts.
• D) Lack of support by the public or the government, and eventually by the accounting profession.

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Definitions:

Cost-Plus Approach

A pricing strategy where a fixed percentage or fixed amount is added to the total cost of producing a product or delivering a service to determine its selling price.

Projected Selling Price

The anticipated price at which a product is expected to be sold in the future, considering factors such as cost, market demand, and competition.

Unnecessary Costs

Expenses that do not add value to the product or service and could be eliminated without affecting the quality or output.

Variable Factory Overhead

This includes costs of factory operations that vary directly with the volume of output, such as utilities and supplies used in production.