In Traditional Costing Systems, Overhead Is Generally Applied Based on

question 31

Multiple Choice

In traditional costing systems, overhead is generally applied based on

• A) direct labor.
• B) machine hours.
• C) direct material dollars.
• D) units of production.

---

Definitions:

Upscale Manufacturers

Companies that produce high-quality, often luxury products aimed at a market segment willing to pay premium prices for superior goods.

Prestige Products

High-quality items that are marketed to appeal to consumers' desires for luxury and status rather than practicality.

Lower-priced Products

Items sold at a cost that is below the average price point, often to attract price-sensitive consumers or to compete in the market effectively.

Pricing Orientation

describes a business strategy focused on setting prices based on market factors, cost, customer demand, or competition.