Slocum Company Has Determined the Following Information About a New

question 102

Multiple Choice

Slocum Company has determined the following information about a new product.The manufacturing process used for the product is very complex and it has a higher proportion of indirect costs than direct costs.The company wants a 100% markup on cost.The following data is available:
$\begin{array} { l } \text {Product cost according to traditional costing system }&\$ 4.00 \text { per unit}\\ \text {Product cost according to activity-based costing system }&\$ 7.00 \text { per unit}\\\end{array}$

What price per unit should Slocum Company use for this new product?

• A) $4.00
• B) $7.00
• C) $8.00
• D) $14.00

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Definitions:

Generative

Pertains to the ability to produce or create something new or innovative.

Symbolic

Representing something else, especially something abstract, through symbols or symbolism.

Semantic

Pertaining to meanings or the way meaning is constructed in language, especially the meaning of words and sentences.

Cognitive Revolution

The cognitive revolution refers to a significant shift in psychology during the 1950s to 1970s, emphasizing the study of the mind and internal mental processes.