anthony4034
13.03.2020 •
Business
Dobles Corporation has provided the following data from its activity-based costing system:
Activities Estimated
Overhead Cost Expected Activity
Assembly $962,280 66,000 machine-hours
Processing orders $89,370 1,800 orders
Inspection $131,222 1,820 inspection-hours
The company makes 430 units of product D28K a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $36.14 per unit and its direct labor cost is $29.88 per unit.
According to the activity-based costing system, the unit product cost of product D28K is closest to:
A. $95.71 per unit
B. $86.68 per unit
C. $66.02 per unit
D. $94.09 per unit
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Ответ:
Trade off analysis
Explanation: In simple words, it refers to the decision making technique under which the decision maker gives up one thing for gaining the other.
In the given case, Global corp. were asking their consumers to prioritize the attributes they were expecting from the new product. The higher demanded attribute would have been added and the lower one will be neglected.
Hence from the above we can conclude that the correct answer is trade off.