Computers and Smartphones Have Very Short Product Life Cycles

question 51

Multiple Choice

Computers and smartphones have very short product life cycles.This means ______.

• A)they need to be replaced only at long intervals
• B)for these products,new technology is introduced frequently
• C)consumers usually buy only one unit in their lifetimes
• D)there are few repeat customers for these products

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Definitions:

Fixed Expenses

Recurring costs that remain relatively constant regardless of business activity levels, including property leases and insurance premiums.

High-low Method

An approach to estimating the fixed and variable components of costs by analyzing the highest and lowest levels of activity.

Variable Cost

Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.

Machine-hour

A unit of measure representing the operation of a machine for one hour, often used to allocate manufacturing overhead.