All of These Are Examples of Typical Benefits That a Company

question 122

Multiple Choice

All of these are examples of typical benefits that a company might enjoy when switching to a new computer system except:

• A)Reduced clerical costs
• B)Enhanced sales
• C)Better customer service
• D)Lower hardware and software costs

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Definitions:

Actual Overhead

The real, incurred costs of running a production or service operation, excluding direct labor and direct materials.

Activity-Based Costing

A pricing strategy that pinpoints various tasks within a company and allocates the expenses of each task to every product and service based on their specific usage.

Overhead Rate

A calculation used to allocate indirect costs to produced goods or services, often based on labor hours, machine hours, or direct labor costs.

Cost of Services Account

An accounting category that includes all direct costs associated with the delivery of services, such as labor and materials.