Which of the Following Is Not an Indicator of a Company

question 33

Multiple Choice

Which of the following is not an indicator of a company whose costing system needs to be more accurate?

• A) Competitors' prices seem unrealistically low.
• B) Products that are difficult to make have low profit margin.
• C) At the end of the year, there is a significant amount of overapplied overhead.
• D) Customers are not deterred by a significant increase in prices.

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Definitions:

Labor Resource Market

The market in which individuals offer their labor to employers in exchange for wages.

Substitute Input

An alternative resource or material used in the production process that can replace another in response to changes in market conditions or prices.

Tablet-Computer Industry

The sector of the tech industry that designs, manufactures, and sells tablet computers, a type of portable computing device.

Productivity Increase

A rise in the efficiency of production, often measured by the quantity of goods and services produced with a given amount of inputs in a specific time period.