Identify the correct option for the given statement.
Answer to Problem 1CQ
Option “a”
Explanation of Solution
Product design is a first process in the production cycle and it has objectivity to create a product with customer requirement in terms of quality, durability and functionality. Generally, product design drives up the cost in several ways, because unique components of the similar product would increase the cost of product by the purchase and maintenance cost of raw material inventories. At the same time, excessive complexity in the production process would incur more warranty and repair costs. Hence, the product design has locked most costs in the production cycle.
From the above explanation it is clear that “option b, c and d” are incorrect options and option “a” is a correct answer.
Want to see more full solutions like this?
Chapter 14 Solutions
EBK ACCOUNTING INFORMATION SYSTEMS
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education