Which of the Following Is LEAST Likely to Be a Factor

question 63

Multiple Choice

Which of the following is LEAST likely to be a factor on which the price of a product is based?

• A) what the market will bear
• B) the amount of support provided by resellers
• C) the economic well-being of the consumer
• D) the consumer's ability to gauge the value of the product
• E) the relative value of the product

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Definitions:

Machine-Hours

A measure of production activity that quantifies the amount of time machines are used to produce goods.

Total Manufacturing Cost

The total expenses directly related to the manufacture of products, encompassing the price of raw materials, wages for direct labor, and indirect manufacturing costs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual jobs or units based on a certain activity base, such as labor hours or machine hours, calculated before the period begins.

Machine-Hours

A measure of production or work volume calculated by the number of hours machines are operating.