A Company Has Already Incurred a $24,000 Cost in Partially

question 118

Multiple Choice

A company has already incurred a $24,000 cost in partially producing its two products.Their selling prices when partially and fully processed are shown in the following table with the additional costs necessary to finish their processing.Based on this information,should any products be processed further?
$$\begin{array} { | c | c | c | c | } \hline \text { Product } & \begin{array} { c } \text { Unfinished } \\\text { Selling Price }\end{array} & \begin{array} { c } \text { Finished } \\\text { Selling Price }\end{array} & \begin{array} { c } \text { Further } \\\text { Processing } \\\text { Costs }\end{array} \\\hline \text { A } & \$ 900 & \$ 1,000 & \$ 65 \\\hline \text { B } & 600 & 675 & 76 \\\hline\end{array}$$

• A) Both product A and product B should be processed further.
• B) Neither product A nor product B should be processed further.
• C) Only product B should be processed further.
• D) Only product A should be processed further.
• E) A processing further decision cannot be made from the available data.

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Definitions:

Naive Physics

Naive physics is the common-sense understanding of the physical world that people develop based on their everyday experiences, often without formal education in physics.

Object Persistence

The property of an object to continue existing even when it is not being perceived or observed.

Piaget's Theory

A theory of cognitive development that describes how children's intellectual abilities evolve through four stages from infancy to adolescence.

Vygotsky's Theory

A theory that emphasizes the fundamental role of social interaction in the development of cognition, suggesting that community and culture play central roles in the process of making meaning.