Indications That a Product Cost System Needs Revision Include

question 36

Multiple Choice

Indications that a product cost system needs revision include

• A)the product line consists of a products which are produced at different locations.
• B)the product costing computer system does not use the latest technology.
• C)the company uses a single allocation base system developed long ago.
• D)prime cost represent the vast majority of product cost.
• E)managers lose bids they expected to win and win bids they expected to lose.

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Definitions:

Purchase Behavior

The actions and decisions that lead consumers to buy products or services, influenced by factors such as personal preferences, social influences, and marketing.

Profit Margin Percentage

A financial metric that measures the amount of net income earned with each dollar of sales by comparing net income and net sales.

Marketing Mix

A set of controllable marketing tools—product, price, place, and promotion—that a company uses to pursue its marketing objectives in the target market.

Target Market

A specific group of potential consumers at whom a company aims its products and services, identified through variables such as demographics, behaviors, and needs.