Precise GPS Company's Ad States That Its Product Is "The

question 37

Multiple Choice

Precise GPS Company's ad states that its product is "the finest that money can buy." Because of this ad, the Federal Trade Com?mission is most likely to issue

• A) a cease-and-desist order.
• B) a counteradvertising order.
• C) restitution.
• D) none of the choices.

---

Definitions:

Standard Cost

A set cost for producing either one unit or multiple units of a product within a defined timeframe, based on existing or expected operational circumstances.

Direct Materials

The raw materials that can be directly traced to the production of a specific product.

Direct Labor

The wages and other costs for labor that is directly involved in the production of goods or services.

Fixed Overhead

Regular, unchanging costs that a business incurs, regardless of the level of production or sales activity, such as rent and salaries.