The JIT Environment Has Caused a Reassessment of Product Costing

question 13

Multiple Choice

The JIT environment has caused a reassessment of product costing techniques.Which of the following statements is true with respect to this reassessment?

• A)Traditional cost allocations based on direct labor are being questioned and criticized.
• B)The federal government,through the SEC,is responsible for the reassessment.
• C)The reassessment is caused by the replacement of machine hours with labor hours.
• D)None of the above is true.

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Definitions:

Restraint of Trade

Legal agreements or policies that restrict competition or limit the freedom to conduct business in a specific market or manner.

Loss Leader Advertising

A marketing strategy where a product is sold at a loss to attract customers in the hope they will buy other items at full price.

Competition Act

Legislation aimed at promoting fair business practices, preventing anti-competitive behavior, and regulating mergers to ensure a competitive market environment.

Misleading Advertising

Promotional material that deceives or misinforms consumers, either intentionally or unintentionally.