Which of the Following Is an Example of a SKU

question 8

Multiple Choice

Which of the following is an example of a SKU?

• A) Purses
• B) Dockers pants
• C) Liz Claiborne dress, size 4, red with long sleeves, silk
• D) Timex Sports Watches
• E) Secret pantyhose

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Definitions:

Plantwide Overhead Rate

A single overhead rate calculated by dividing the total manufacturing overhead costs by the total amount of a common base (like direct labor hours or machine hours) used across an entire plant.

Activity-based Costing

A costing methodology that assigns production costs to products or services based on the activities and resources that go into their creation.

Traditional Costing System

A traditional costing system allocates indirect costs to products based on a single measure of activity, such as machine hours or direct labor hours, often not capturing the true costs of complex production processes.

Batch-level Costs

Costs associated with a specific batch of products, including setup costs and quality testing, that are not directly related to the manufacturing of individual items within the batch.