As Part of Her Marketing Project, Lily Unruh Is Studying

question 4

Multiple Choice

As part of her marketing project, Lily Unruh is studying how Marriott operates. Since she had thought it was simply a hotel chain, she was amazed to learn that its food divisions provide food for school cafeterias, airlines, hotels, and fast-food restaurants. Marriott's food division is departmentalized by which of the following?

• A) geography
• B) function
• C) product
• D) customer

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Definitions:

Prime Costs

The combined costs of direct material and direct labor required to produce a good.

Conversion Costs

Costs incurred to convert raw materials into finished goods, including direct labor and manufacturing overhead.

Prime Costs

The combination of direct materials and direct labor costs that are directly attributable to the production of goods.

Nonmanufacturing Cost

Expenses not directly involved in the production of goods, such as selling, administration, and other overhead costs.