Which of the Following Statements Is an Example of a Business

question 73

Multiple Choice

Which of the following statements is an example of a business case argument based on fear?

• A) If we do not implement this system, our competitors could gain a significant advantage over us.
• B) This system has the potential to reduce required effort by 40 percent.
• C) Using this system will help our employees serve customers more efficiently.
• D) The system can help us meet both individual as well as organizational goals.
• E) The new system is user-friendly and can be implemented almost immediately.

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Definitions:

Overapplied

Refers to a condition where the amount of costs allocated or applied to goods or services exceeds the actual costs incurred.

Manufacturing Overhead

All manufacturing costs that are not directly tied to a specific product or production activity, including utilities, rent, and salaries for supervisors.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Direct Materials Costs

The cost of raw materials directly used in the production of goods, which can be easily traced back to the finished product.