After mislabeling a product that has been packaged and distributed what should a company do to correct this problem? The company should issue a recall of the product and list out what was mislabled so that those who purchased the product are aware of the actual incredients. It's important to issue a recall immediately because some people may be allergic or have some type of reaction to an ingredient that was not properly listed.
Answer:
The options for this question are the following:
A. some manufacturing costs (i.e., the costs of idle capacity and organization-sustaining costs) will not be assigned to products.
B. some non-manufacturing costs are assigned to products.
C. first-stage allocations may be based on subjective interview data.
D. all of the above are reasons why an activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles
The correct answer is D. all of the above are reasons why an activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles.
Explanation:
The ABC Activity Based Costing system is a model that allows the allocation and distribution of the different indirect costs, according to the activities carried out, since it is these that actually generate costs. This system arises from the need to solve the problem that standard costs normally present, when they do not accurately reflect the value added chain in the elaboration of a specific product or service, and therefore, an adequate determination of the price.
The ABC cost model assigns and distributes indirect costs according to the activities carried out in the product or service elaboration process, identifying the origin of the cost with the necessary activity, not only for production but also for its distribution and sale; The activity is understood as the set of actions that aims to incorporate added value to the product through the elaboration process. Complementing the definition of activity, it should be mentioned that the ABC Model is based on the fact that products and services consume activities, and these in turn are the generators of costs.
Based on the information above, Marilyn's travel uses a mass customization to delight its customers. Mass customization is a technique that is used in the field of manufacturing and marketing that is being associated with the mass production based on its flexibility of the products that are custom made.
