The Wireless Communication Business Has Changed Dramatically Since the 1980s,going

question 43

Multiple Choice

The wireless communication business has changed dramatically since the 1980s,going from mobile phones to smartphones.This was only possible because:

• A)of the persuasive advertising campaigns undertaken by firms in the wireless communication industry.
• B)consumers welcomed the changes and were willing and able to pay for them.
• C)of the dot-com stock market bubble that lasted from 1995 to 2000.
• D)the government tightly regulated the wireless communication industry with regulations and taxes.
• E)businesses needed to produce these products in order to recoup their investment in research and development.

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Definitions:

Fixed Overhead Rate

A predetermined rate used to allocate fixed overhead costs to cost objects, calculated at the beginning of a period based on estimated costs and activity levels.

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs attributed to variations in production volume.

Gross Profit

The financial difference between revenue and the cost of goods sold before other expenses are deducted.

Fixed Factory Overhead Rate

A predetermined rate used to allocate fixed overhead costs to produced goods based on a consistent basis, such as labor hours or machine hours.