Easton Company Makes and Sells Scooters Easton Can Currently Purchase the Scooters It Makes from Another

question 57

Multiple Choice

Easton Company makes and sells scooters.Easton incurred the following costs in its most recent fiscal year: $\begin{array}{c}\text { Cost Items Appearing on the Income Statement }\\\begin{array}{|l|l|}\hline\text { Materials cost ( } \$ 10 \text { per unit) } & \text { Depreciation on manufacturing equipment } \\\hline \text { Company president's salary } & \text { Salaries of administrative personnel } \\\hline \text { Labor cost ( } \$ 4 \text { per unit) } & \text { Research and development costs } \\\hline \text { Advertising costs }(150,000 \text { per year) } & \text { Real estate taxes on factory } \\\hline \text { Shipping and handling (\$0.15 per unit) } & \text { Inspection costs } \\\hline\end{array}\end{array}$ Easton can currently purchase the scooters it makes from another company.If the company purchases the scooters,Easton would still continue to use its own logo,sales staff,and advertising programs.Which of the following costs would be classified as a unit-level cost?

• A) Company president's salary
• B) Depreciation on manufacturing equipment
• C) Materials cost
• D) Real estate taxes on factory

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Definitions:

General Adaptation Syndrome

A theoretical framework describing the body's short-term and long-term reactions to stress, which includes stages of alarm, resistance, and exhaustion.

Fight-Or-Flight

A physiological response to perceived danger, preparing the body to either confront the threat or escape.

Consequences

The outcomes or effects that naturally follow from a particular behavior or action.

Emotional Stress

A form of stress arising from one's emotions, feelings, or relationships, potentially impacting one's psychological and physical well-being.