A Company Produces a Single Product

question 221

Multiple Choice

A company produces a single product. Variable production costs are $12 per unit and variable selling and administrative expenses are $3 per unit. Fixed manufacturing overhead totals $36,000 and fixed selling and administration expenses total $40,000. Assuming a beginning inventory of zero, production of 4,000 units and sales of 3,600 units, the dollar value of the ending inventory under variable costing would be:

• A)$4,800
• B)$8,400
• C)$6,000
• D)$3,600

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Definitions:

Marketing Strategy

A plan of action designed to promote and sell a product or service to effectively reach potential customers and achieve competitive advantage.

Marketing Mix

A combination of factors that can be controlled by a company to influence consumers to purchase its products.

Brand-Building

The process of creating and strengthening a brand's equity through strategies like marketing, customer engagement, and product quality.

Pricing

The process of determining the value that will be charged for goods or services offered by a business.