"Build a Better Mousetrap" Refers To

question 1

Multiple Choice

"Build a better mousetrap" refers to:

• A) product design challenges.
• B) marketing to demographically mixed markets.
• C) attracting significant numbers of customers.
• D) a pricing strategy.

---

Definitions:

Overhead Cost

All ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and salaries of non-production staff.

Activity Rates

Are used in activity-based costing to allocate costs to products or services based on the activities required for their production or delivery.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, improving accuracy in product costing.

Overhead Cost

Expenses related to the day-to-day running of a business that are not directly linked to a specific product or service but are necessary for the business to operate.