Roma Corporation Has Computed the Following Unit Costs for the Year

question 27

Multiple Choice

Roma Corporation has computed the following unit costs for the year just ended: $$\begin{array} { l r } \text { Direct material used } & \$ 11 \\\text { Direct labor } & 17 \\\text { Variable manufacturing overhead } & 21 \\\text { Fixed manufacturing overhead } & 23 \\\text { Variable selling and administrative cost } & 5 \\\text { Fixed selling and administrative cost } & 27\end{array}$$ Under variable costing, each unit of the company's inventory would be carried at:

• A) $49.
• B) $54.
• C) $72.
• D) $104.
• E) None of the other answers are correct.

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Definitions:

Preference Development

The process by which consumers or buyers develop a liking or selection for certain products or brands over others through marketing, experience, or information gathering.

Alternative Evaluation

The process of assessing the advantages and disadvantages of different options before making a purchasing decision.

Consumer Purchase Decision

The process a consumer goes through in choosing a particular product or service, influenced by internal and external factors.

Financial Transaction

An agreement or exchange between two parties involving the transfer of money, goods, services, or property.