Drake Manufacturing Sells a Number of Goods Whose Selling Price

question 65

Multiple Choice

Drake Manufacturing sells a number of goods whose selling price is heavily influenced by cost. A recent study of product no. 520 revealed a traditionally-derived total cost of $1,623 and a selling price of $1,850 based on that figure. A newly computed activity-based total cost is $1,215. Which of the following statements is true?

• A) All other things being equal, Drake should consider increasing its sales price.
• B) Drake should increase the product's selling price to maintain the same markup percentage.
• C) Product no. 520 could be labeled as being overcosted by Drake's traditional costing procedures.
• D) If product no. 520 is undercosted by traditional accounting procedures, then all of Drake's other products must be undercosted as well.
• E) Generally speaking, the activity-based cost figure is "less accurate" than the traditionally-derived cost figure.

Recognize the influence of culture on psychological processes.

Explore the impact of the duplex mind (automatic and deliberate systems) on stereotypes and prejudice.

Examine the evolutionary aspects of human psychology, including the social brain theory.

Assess the significance of interpersonal relationships and social acceptance in human evolution and current behavior.

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Definitions:

Visual Cliff

A psychological experiment designed to study the perception of depth and the development of fear of falling in infants.

Perceptual Development

The gradual improvement in the ability to process and interpret sensory information through the senses as one grows from infancy through childhood.

Motor Development

The progression of muscle coordination, strength, and the ability to move and control body movements, crucial in childhood for acquiring skills like crawling, walking, and grasping.

Anesthesia

A medical treatment that involves the use of drugs to prevent pain during surgery, resulting in loss of sensation or consciousness.