USSteel Corp

question 2

Multiple Choice

U.S.Steel Corp.is a well-known steel manufacturing company.SAMCROW, one of the customers of U.S.Steel Corp.holds an RFM score of 111.Which of the following characteristics relates SAMCROW with its RFM score?

• A)SAMCROW has ordered recently and orders frequently, but it orders the least expensive goods.
• B)SAMCROW has not ordered in some time, but when it did order in the past it ordered frequently, and its orders were of the highest monetary value.
• C)SAMCROW has not ordered for some time, it did not order frequently, and, when it did order, it bought the least-expensive items.
• D)SAMCROW has ordered recently and orders frequently, and it orders the most expensive goods.

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Definitions:

Overhead Rate

Refers to the cost of running a business that cannot be directly attributed to a specific product or service, often expressed as a percentage of labor or material costs.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate product costing.

Departmental Overhead Rate

A rate used to allocate overhead costs to specific departments, based on criteria like department size, expenditure, or machine hours used.

Volume-based Allocation

A method of allocating costs based on the volume of goods produced or services provided, often used in manufacturing and service industries.