Which of the Following Is a Similarity Between a Production

question 46

Multiple Choice

Which of the following is a similarity between a production orientation and a sales orientation?

• A) Both ignore the importance of assessing a firm's internal capabilities.
• B) Both lack an understanding of the needs and wants of the marketplace.
• C) Both place little emphasis on the assessment of manufacturing plants and facilities.
• D) Both fail in a market where demand exceeds supply.

---

Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in producing a product.

Machine Hours

A measure of the amount of time a machine is used in the production process, often used as a basis for allocating manufacturing overhead costs.

Plantwide Overhead Rate Method

A method of allocating manufacturing overhead costs to products based on a single, plant-wide rate, often using direct labor hours or machine hours as the allocation base.

Cost Objects

Any item for which a separate measurement of costs is desired; examples include a product, a service, a project, or a customer.