A Common Way to Estimate Total Market Potential Is to Estimate

question 85

True/False

A common way to estimate total market potential is to estimate the potential number of buyers divided by the average quantity purchased by a buyer.

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Definitions:

Predetermined Overhead Rate

An established rate used to apply manufacturing overhead costs to products, calculated in advance based on expected costs and activity levels.

Labor-Hour

A measure of work effort quantified in hours, commonly used to allocate costs or measure productivity in various contexts.

Fixed Overhead Volume Variance

A financial metric indicating the difference between the budgeted and actual volume of production, multiplied by the fixed overhead rate per unit.

Fixed Overhead Volume Variance

The difference between the budgeted and actual volume of production, which results in a variance in fixed overhead costs allocated per unit.