A Manufacturer Is Using Legitimate Power When It ________

question 105

Multiple Choice

A manufacturer is using legitimate power when it ________.

• A) requests a behavior that is warranted under the selling contract
• B) threatens to withdraw a resource or terminate a relationship
• C) offers intermediaries an extra benefit for performing specific acts or functions
• D) makes the intermediaries sell more of a particular product by offering rewards
• E) sells more products by making use of its reputation in the market

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Definitions:

Machine-Hours

A measure of the amount of time machines are operated in the manufacturing process, used as a basis for allocating costs.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a selected activity base such as labor hours or machine hours.

Direct Labor-Hours

The total hours of labor directly involved in manufacturing a product, used in calculating labor costs and efficiency in production.

Job-Order Costing

A system that assigns manufacturing costs to each product, providing a way to calculate the cost per item or job specifically.