The correct answer is A. product under costing.
A product under costing is a product that requires a large amount of resources to produce, but has a low per unit cost. This can happen when a product is produced in high volumes, or when the cost of the resources is spread out over a large number of units.
Product under costing can be a problem because it can lead to a loss of profit. If the cost of producing a product is higher than the price that it is sold for, the company will lose money on each unit that is sold. This can be a serious problem if the product is a major part of the company’s revenue.
There are a number of ways to address the problem of product under costing. One way is to increase the price of the product. This can be difficult to do, however, if the product is already priced competitively. Another way to address the problem is to reduce the cost of producing the product. This can be done by finding cheaper suppliers, or by improving the efficiency of the production process.
In some cases, it may be necessary to discontinue a product that is under costing. This is a difficult decision to make, but it may be necessary in order to protect the company’s overall profitability.
Here is a brief explanation of each option:
- A. Product under costing: A product that requires a large amount of resources to produce, but has a low per unit cost.
- B. Product over costing: A product that requires a small amount of resources to produce, but has a high per unit cost.
- C. Expected under cost: A product that is expected to have a low per unit cost, but actually has a high per unit cost.
- D. Expected over cost: A product that is expected to have a high per unit cost, but actually has a low per unit cost.