Which of the Following Can Signal the Need for a New

question 34

Multiple Choice

Which of the following can signal the need for a new product costing system?

• A) Line managers do not believe reported product costs.
• B) Complex products have high reported profitability while more basic high-volume products show small margins or even losses.
• C) Overhead rates are high and increasing.
• D) All of the given answers.

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Definitions:

Legal Detriment

A loss or disadvantage suffered as a result of entering into a legal agreement or contract.

Identity Theft Penalty Enhancement Act

A federal law passed to impose stricter penalties on individuals convicted of identity theft, including aggravated cases involving terrorism or felony.

Forbearance

The act of refraining from exercising a legal right, especially by a creditor who gives the debtor more time to pay an outstanding debt.

Promissory Estoppel

A legal principle that prevents a promisor from reneging on a promise when the promisee has relied on that promise to their detriment.