If cost is eliminated, then reducing the perceived usefulness that customers can obtain by using the market offering will come under _____________?
Correct answer: C. value added cost
- A. designed-in costs
- B. locked-in costs
- C. value added cost
- D. non-value added cost
Explanation
A value-added cost contributes to the usefulness or features that customers perceive in a product or service, so removing it would reduce customer utility. A non-value-added cost can be eliminated without reducing that perceived usefulness.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
An estimated price, which is expected to be paid by customers for particular market offering is classified as __________?
The concept, which states that resources are used to meet particular goals is ____________?
The kind of cost which on elimination, would not reduce the perceived usefulness that customers can obtain by using the market offering is known as ___________?
The practice by seller, about offering same product at different prices, to the different customers is known as __________?
A technique, which accumulates and tracks the costs of business function in value chain attributed to each market, offering from R&D to final customer support, is called __________?
If total production is 25000 units and target annual operating income is $300000, then target operating income per unit would be ____________?