Which of the following statements, as indicators of product cost systems, are out of date?
i. Highly profitable products are difficult to make.
ii. Competitors' prices appear to be very low.
iii. The market easily absorbs price increases.
A) i
B) i and iii
C) ii and iii
D) i, ii and iii

Question

Quizplus · Accepted Answer

The statements reflect outdated views on product cost systems. i) Modern manufacturing and automation have made it possible to produce highly profitable products efficiently. ii) Competitors' pricing strategies may involve efficiencies or cost savings not visible externally, making their low prices feasible. iii) In today's competitive and transparent markets, significant price increases are often challenging to implement without affecting demand.

Which of the Following Statements, as Indicators of Product Cost