The Concept of "Saving Money by Firing Your Customers" Refers

question 32

Multiple Choice

The concept of "saving money by firing your customers" refers to which type of customer?

• A)customers that lay complaints
• B)unprofitable customers
• C)old customers
• D)new customers
• E)no customer should ever be fired

---

Definitions:

Manufacturing Overhead Applied

The portion of estimated manufacturing overhead cost that is assigned to each unit of production based on a predetermined rate.

Labor-Hour

A labor-hour represents an hour of work performed by an employee, typically used as a basis for allocating labor costs or measuring productivity.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and factory equipment depreciation.

Underapplied

A situation in cost accounting where the allocated or applied costs are less than the actual costs incurred.