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John is evaluating four brands of 3-D televisions and has decided that picture quality is the most important attribute. All of the alternatives exceed his minimum cutoff for this attribute, so he next compares them on price. One option did not meet his acceptable price cutoff because the price was too high and was eliminated from further review. Next, he looked at the number of HDMI inputs and eliminated another alternative because it did have the minimum number of inputs. He continued in this manner until only one alternative was left and that's the one he decided to purchase. Which decision rule was John using?
Raw Materials
Basic substances in their natural, modified, or semi-processed states used as inputs for production.
Predetermined Overhead
An estimated rate used to assign overhead costs to products or services based on a planned amount of overhead and a planned allocation base.
Direct Labor
Workers who are directly involved in the manufacturing of goods or provision of services, whose labor costs are directly attributed to the product or service.
Raw Materials
Fundamental substances utilized as the starting point in the manufacturing process to create products.
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