In Order to Achieve Low Unit Costs, Logitech Electronics Has

question 88

Multiple Choice

In order to achieve low unit costs, Logitech Electronics has only produced 1000 computer mice. It's wholesale customers want to buy at least 1500 units. What has the quantity produced to achieve low unit costs created?

• A)a discrepancy of quantity
• B)a discrepancy of assortment
• C)a discrepancy of accumulation
• D)a discrepancy of possession

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Definitions:

Manufacturing Overhead Applied

The process of assigning manufacturing overhead costs to the units produced, based on a predetermined overhead rate.

Work in Process Account

An inventory account that tracks the costs of products in various stages of completion but not yet finished.

Manufacturing Overhead

The indirect costs associated with manufacturing, exclusive of direct materials and direct labor expenses, necessary to produce goods.

Allocation Base

A criterion or measure used for allocating costs to cost objects, based on factors such as time, output, or activity level.