You Work for a Company That Is Losing Sales Because

question 188

Multiple Choice

You work for a company that is losing sales because it takes days to manufacture products.What technology can you suggest the company use to speed production?

• A) commercial virtual reality
• B) telecommuting
• C) computer-aided manufacturing
• D) automated vehicles

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Definitions:

Absorption Costing

A bookkeeping approach that encompasses the total expenses of production, including direct materials, direct labor, along with both variable and fixed overhead costs, into the pricing of a product.

Unit Product Cost

The total cost (both fixed and variable) to produce a unit of product, used for setting prices and analyzing efficiency.

Absorption Costing

An accounting method where all manufacturing costs, including both variable and fixed costs, are allocated to produced units, thus ‘absorbing’ them.

Unit Product Cost

The total cost associated with producing a single unit of a product, calculated by dividing the total production costs by the number of units produced.