Lipton makes several easy-to-prepare side dishes all using macaroni shells.In promoting this product line,Lipton offers a 50-cents-off coupon that can be used for any of its macaroni-based mixes.Therefore,Lipton must consider _____ when pricing its mixes.
A) joint costs
B) differential costs
C) bundling costs
D) potential (or basing)costs
E) factorial costs

Question

Quizplus · Accepted Answer

Joint costs are incurred when a single production process yields multiple products. In this case, Lipton's macaroni-based mixes are all produced using the same process, so the costs of production are joint costs.

Lipton Makes Several Easy-To-Prepare Side Dishes All Using Macaroni Shells