The Three Most Important Functions of Packaging Are to Contain

question 74

True/False

The three most important functions of packaging are to contain and protect products; promote products; and facilitate the storage,use,and convenience of products.

Apply overhead based on direct labor-hours using traditional costing methods.

Identify the impact of costing methods on decision making and financial reporting.

Compute predetermined overhead rates in traditional costing systems.

Analyze the difference in overhead allocation between traditional costing and ABC.

---

Definitions:

Variable Cost

Costs that vary directly with the level of production or service activity.

Fixed Cost

Expenses that do not change with the level of production or sales over the short term, such as rent, salaries, and insurance.

Period Cost

An expense that is not directly tied to the production process but rather incurred over a specific time period.

High-low Method

A technique used in accounting and finance to estimate variable and fixed costs based on the highest and lowest levels of activity.