Advantages of Using the Full Cost of the Product as the Cost

question 97

Multiple Choice

Advantages of using the full cost of the product as the cost base include all of the following EXCEPT that:

• A)it does not require a detailed analysis of cost behaviour for computations.
• B)it limits the ability of a salesperson to cut prices.
• C)managers are informed regarding the minimum long-run cost they need to recover to stay in business.
• D)fixed cost allocations can be arbitrary.

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Definitions:

Monoamine Oxidase Inhibitors

A class of medications used to treat depression by inhibiting the action of monoamine oxidase, thereby increasing the levels of certain neurotransmitters in the brain.

Agoraphobia

An anxiety disorder characterized by an intense fear of places and situations where it might be difficult to escape or get help.

Toxicity

The degree to which a substance can harm humans or animals, with effects ranging from minor irritation to lethal outcomes.

Side Effect

Unintended and usually adverse effects of a drug or medical treatment, distinct from the desired effect.