One of the Benefits of Building a Strong Brand with High

question 43

Multiple Choice

One of the benefits of building a strong brand with high brand equity is

• A) smaller margins.
• B) a narrower distribution channel.
• C) decreased customer loyalty.
• D) brand extension opportunities.
• E) increased vulnerability to competitive actions.

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Definitions:

Underapplied Overhead

A scenario where the estimated overhead costs allocated are less than the actual overhead costs incurred during production.

Direct Labor-Hours

The total hours of labor actually worked by employees directly involved in manufacturing a product.

Overapplied Overhead

The condition where the overhead applied to products or services exceeds the actual overhead costs incurred.

Actual Manufacturing Overhead

The actual costs incurred in the production process that cannot be directly attributed to specific units of product, including costs such as maintenance and utilities.