Three possible product cost definitions were introduced:
(1) Value chain,
(2) Operating, and
(3) Manufacturing. Identify which of the three product cost definitions best fits the following situations (justify your choice):
a. Setting the price for a new product
b. Valuing finished goods inventories for external reporting
c. Determining whether to add a complementary product to the product line
d. Choosing among competing product designs
e. Calculating cost of goods sold for external reporting
f. Deciding whether to increase the price of an existing product
g. Deciding whether to accept or reject a special order, where the price offered is lower than the normal selling price
h. Determining which of several potential new products should be developed, produced, and sold
i. Deciding whether to produce and sell a product whose design and development costs were higher than budgeted
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