It Is Not a Deceptive Trade Practice

question 28

Multiple Choice

It is not a deceptive trade practice:

• A) if a well-known personality endorses a product without disclosing that he or she is being paid to do so.
• B) if a well-known retailer baits a prospective customer by dangling an alluring offer and removes the offer once the customer arrives.
• C) for a well-known personality to endorse two competing products at the same time.
• D) if a well-known seller conducts a "contest" to promote its product, but never awards any prizes.
• E) if a well-known seller fails to stock enough of the advertised product to meet anticipated demand.

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Definitions:

Machine Setup Costs

Expenses incurred to prepare machinery for production, including calibration, cleaning, and testing.

Batch Level

Refers to the classification in cost accounting that associates costs with specific batches of goods or services rather than with individual units or processes.

Unit-level Costs

Costs that are incurred for every unit produced, directly proportional to the production volume.

Product Cost

The total cost incurred to create a product, encompassing raw materials, labor, and overhead expenses.