A Software Development Company Runs an Advertising Campaign for One

question 22

Multiple Choice

A software development company runs an advertising campaign for one of its products emphasizing that it is the most preferred financial software brand. The ad also states, "Thousands of customers have switched over to our software." The company is making use of a(n) _____ appeal.

• A)emotional
• B)news
• C)product popularity
• D)product feature
• E)favorable price

---

Definitions:

Variable Manufacturing Overhead

Costs in the manufacturing process that vary with the level of production output, such as materials and energy usage.

Fixed Manufacturing Overhead

Costs associated with manufacturing that remain constant regardless of the level of production, such as salaries of management and rent of the facility.

Absorption Costing

A costing method that includes all manufacturing costs, both fixed and variable, in the cost of goods sold.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual products based on a certain activity base.