The Major Drawback of Using Aesthetic Modifications in Products Is

question 69

Multiple Choice

The major drawback of using aesthetic modifications in products is:

• A) that the cost of the modifications is very high.
• B) that the value of the modification is determined subjectively.
• C) the need for redesign of the product.
• D) its dependency on quality and functional modifications.
• E) that there is no differentiation for the product in the market.

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Definitions:

Labor Quantity Variance

This term measures the difference between the actual quantity of labor used and the expected (or standard) amount, multiplied by the standard labor rate, often used in cost accounting.

Overhead Costs

Overhead Costs are indirect expenses related to the day-to-day operations of a business, which are not directly tied to specific product production or services, such as rent, utilities, and administrative salaries.

Standard Hours

The set amount of time expected to complete a task or produce a good, used in planning and measuring efficiency.

Price Variance

The difference between the actual cost of a good or service and its planned or budgeted cost.