Since the Creation of the Hershey Candy Bar Over 100

question 35

Multiple Choice

Since the creation of the Hershey candy bar over 100 years ago,the price of chocolate has fluctuated,but the price of the candy bar has slowly risen.In fact,when the price of chocolate had dramatic price fluctuations over a three-year period,the price of a Hershey's candy bar remained the same.When the price of chocolate was very high,Hershey's was able to maintain its profits by making the bars smaller.Hershey's engaged in:

• A)top-down marketing.
• B)trading up.
• C)bottom-up marketing.
• D)downsizing.

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Definitions:

Equivalent Units Of Production

A calculation used in process costing that converts partially completed goods into a number of fully completed units.

Conversion Costs

The combined costs of direct labor and manufacturing overheads incurred to convert raw materials into finished products.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.

Equivalent Units Of Production

A concept in cost accounting used to allocate costs to partially completed goods, based on the amount of work done on them.