Makwa Industries Has Developed Two New Products but Has Only

question 11

Multiple Choice

Makwa Industries has developed two new products but has only enough plant capacity to introduce one product during the current year.The following data will assist management in deciding which product should be selected.Makwa's fixed overhead includes rent and utilities,equipment depreciation,and supervisory salaries.Selling and administrative expenses are not allocated to individual products. Research and development costs for Makwa's two new products are

• A)Prime costs.
• B)Conversion costs.
• C)Opportunity costs.
• D)Sunk costs.

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Definitions:

Material Misrepresentation

A false statement of a substantial fact that induces someone to enter into a contract or transaction.

Insurance Application

A formal request for coverage, providing necessary information for underwriting to evaluate and issue a policy.

Arbitration Clause

A provision in a contract that requires parties to resolve disputes through arbitration rather than through the court system.

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