Which of the Following Holds True for Products with Low

question 148

Multiple Choice

Which of the following holds true for products with low value-to-weight ratios?

• A)They are relatively inexpensive products.
• B)They do not weigh very much.
• C)Their transportation costs account for a very small percentage of total costs.
• D)There is great pressure to produce these products in the optimal location and to serve the world market from there.

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Definitions:

Responsibility Level

The scope of authority and accountability designated to individuals or departments within an organization, often related to budgeting and costs.

Controllable Costs

Costs that can be influenced or changed by management decisions in the short term.

Master Budget

A comprehensive financial planning document that consolidates all of a company’s individual budgets, including sales, production, and expenses, for a specific period.

Flexible Budgets

Budgets that adjust or flex with changes in volume or activity, allowing for more accurate comparisons to actual results.