Which of the Following Is a Key Difference Between Product

question 25

Multiple Choice

Which of the following is a key difference between product mix and product line?

• A) Product line is the complete set of the products in an industry, whereas product mix is an incomplete set of products.
• B) Product mix contains products that are similar, whereas product line may contain dissimilar products also.
• C) A product mix is used by larger companies, whereas a product line is used by smaller companies.
• D) Product line is a set of heterogeneous goods or services whereas product mix is a set of homogenous products.
• E) Product mix includes all products from a single manufacturer, whereas product line contains a group of similar products.

---

Definitions:

Predetermined Overhead Rates

Rates used to allocate manufacturing overhead costs to products, typically based on estimated costs and activity levels at the beginning of a period.

Direct Labor Cost

The total cost associated with employing workers who directly manufacture products or perform services, including wages and other benefits.

Overhead Applied

The process of allocating estimated overhead costs to individual products or job orders based on a predetermined rate or method.

Estimated Total Manufacturing Overhead

The projected total costs associated with the manufacturing process that are not directly tied to the production of goods.