Patricia and D'Wayne Were Working on Pricing Their Line of Handcrafted

question 62

Multiple Choice

Patricia and D'Wayne were working on pricing their line of handcrafted office furniture.D'Wayne said,"I think we've got all the main components that affect us and our products,but let's go over the list once again.We've got the stores that will carry our products,our firm's objectives,how customers will respond,and the costs." Which of the following is missing from Patricia and D'Wayne's list of the components?

• A) The message and media for the advertising campaign.
• B) The competition's pricing strategies.
• C) The designs for products that haven't yet been manufactured.
• D) The number of new employees they'll need if the products take off.
• E) Whether or not their suppliers use sustainable raw materials.

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Definitions:

Released

The action of making something available to the public, such as a product, movie, or software.

Variable Costing

An accounting method that includes only variable production costs (direct labor, direct materials, and variable manufacturing overhead) in product cost calculations.

Unit Product Cost

The cost calculated by summing all expenses (material, labor, and overhead) associated with producing a single unit of a product.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the volume of production, such as salaries of supervisors and rent for factory space.