When Managers at Matsushita Realized That Cost Advantages in TV

question 33

Multiple Choice

When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing:

• A)loose bricks.
• B)a "double diamond."
• C)attribute diversity.
• D)layers of advantage.
• E)buyer power.

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Definitions:

Single Plantwide Factory Overhead Rate

A single rate used to allocate factory overhead costs to products, calculated by dividing total overhead costs by a base, usually total direct labor hours or machine hours.

Direct Labor Hours

The total hours worked by employees that can be directly associated with the production of goods or services.

Single Plantwide Overhead Rate

A cost allocation method that applies the same overhead rate to all products, regardless of the department where they were produced or the amount of overhead they actually incurred.

Machine Hours

A metric used to allocate manufacturing overhead costs to individual products based on the number of hours the machines are run to produce them.