_____ Focuses Attention on the Outcomes the Customer Wants, Not

question 62

Multiple Choice

_____ focuses attention on the outcomes the customer wants, not on the precise configuration of the product or service.

• A)Description by industry standard
• B)Description by brand
• C)Description by specification
• D)Description by performance characteristic
• E)Description by market grade

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Definitions:

Conversion Costs

Conversion costs are the costs required to convert raw materials into finished products, including both direct labor costs and manufacturing overhead costs.

Equivalent Units

A concept in cost accounting used to express the amount of work done by an incomplete process on units of output, making partial units comparable to complete units.

Process Costing

An accounting methodology used for homogenous products that averages production costs over all units produced.

Conversion Costs

The sum of labor and overhead costs required to convert raw materials into finished goods.