What Occurs When a Business Sells Directly to the Customer

question 49

Multiple Choice

What occurs when a business sells directly to the customer online and cuts out the middle man?

• A) Intermediaries
• B) Disintermediation
• C) Reintermediation
• D) Cybermediation

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Definitions:

Overapplied Overhead

Refers to the situation where the allocated overhead cost is more than the actual overhead incurred by a business.

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or services based on a specific activity base.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process or the provision of services.

Overapplied Overhead

A condition where the allocated manufacturing overhead costs exceed the actual overhead costs incurred.