HCB Computers Is a Software Consulting Firm

question 19

Multiple Choice

HCB Computers is a software consulting firm.The company decides to launch a GSM based Smartphone,the first hardware product by the company,to capitalize on the increasing demand for smartphones.This is an example of a(n) :

• A)introducing a new product line.
• B)addition to existing product line.
• C)new-to-the world product.
• D)improvement of the existing product.

---

Definitions:

Overhead Costs

General business expenses not directly tied to producing a product or service, such as rent, utilities, and insurance.

Departmental Overhead Rate

A method for assigning overhead costs to products based on the specific department's expenses, facilitating more accurate product costing.

Production Volume

The total quantity of products or services produced within a specific period by a business.

Costing Accuracy

This refers to the preciseness and reliability of costing methods used to estimate or determine the actual costs of production, operations, or projects.