Which of the Following Is a Similarity Between Factory Outlets

question 46

Multiple Choice

Which of the following is a similarity between factory outlets and off-price retailers?

• A)Both sell at prices 25 percent or more below traditional department store prices.
• B)Both offer high levels of customized service to customers.
• C)Both follow an agile approach to inventory.
• D)Both carry multiple product lines that are considerably deep.

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Definitions:

Overhead Cost Per Unit

The allocation of overhead costs to individual units of product, giving a full cost picture of each unit produced.

Product-Level Activity

Activities and costs incurred for a specific product, regardless of the number of units or batches produced.

Testing Prototype

The process of evaluating the initial example of a product to assess its functionality, design, and performance before mass production.

Batch-Level Activity

Costs or activities that are incurred every time a batch is produced, regardless of the size of the batch; part of activity-based costing.