It is important that the product costs reflect as much of the diversity and complexity of the manufacturing process so that ________.
A) total costs reflect market price
B) value-added costs can be eliminated
C) there is high likelihood of cross-subsidizing of product costs
D) product-pricing errors are minimal

Question

Quizplus · Accepted Answer

Accurately reflecting the diversity and complexity of the manufacturing process in product costs helps to minimize pricing errors, ensuring that the product is priced appropriately and competitively in the market. This can help the company to remain profitable and avoid pricing themselves out of the market.

It Is Important That the Product Costs Reflect as Much