At a Price of $654,400 the SSC Ultimate Aero Has

question 130

Multiple Choice

At a price of $654,400 the SSC Ultimate Aero has been ranked as the third most expensive car in the world.The company is only planning to build twenty-five of the current model.If that matches the demand for the Ultimate Aero,then a state of _____has been achieved.

• A) symmetry
• B) marketing balance
• C) unitary economics
• D) commerce stability
• E) price equilibrium

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Definitions:

Absorption Costing

An accounting practice that aggregates all costs related to making a product, including the expenses for direct materials, the wages for direct labor, and every overhead cost, fixed or changing, into the product’s pricing.

Net Operating Income

The profit generated from a business's operations after subtracting operating expenses from operating revenues.

Variable Costing

A method of costing that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product.

Absorption Costing

An accounting method that includes all manufacturing costs - direct labor, direct materials, and overhead - in the cost of a product.