Indications That a Product Cost System Needs Revision Include

question 89

Multiple Choice

Indications that a product cost system needs revision include

• A)managers lose bids they expected to win and win bids they expected to lose.
• B)employees do not believe the cost numbers are accurate.
• C)the company uses a single-allocation-base system developed long ago.
• D)all of the above.

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Definitions:

Thermoception

The sensory perception of temperature.

Gestalt

A concept originating from psychology that emphasizes the human tendency to perceive the whole rather than the individual parts, suggesting that the whole is greater than the sum of its parts.

Figure-Ground Relationship

A visual perception principle where an object (the figure) is perceived distinctly from its background (the ground).

Principle of Closure

A gestalt psychology principle suggesting that individuals tend to perceive incomplete figures as complete.