When Is Repositioning Necessary

question 37

Multiple Choice

When is repositioning necessary?

• A) When the hospitality firm is in an unacceptable position
• B) When the product is not used or subjective
• C) When the product is not meeting the customers' needs and wants
• D) When the hospitality firm is trying to appeal to a new market segment
• E) Both A & D

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Definitions:

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to operations such as utilities and salaries for managers.

Machine-Hours

A metric to quantify the operational time of machines in the production process, essential for calculating manufacturing costs and efficiency.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products, calculated before the accounting period begins based on estimated costs.

Variable Manufacturing Overhead

This refers to the production costs that change in proportion to the level of manufacturing activity.