Access People Has Developed a Mini-Laptop That Will Be Marketed

question 84

Multiple Choice

Access People has developed a mini-laptop that will be marketed in developing countries. It is estimated that the demand for the new product will start out slow and accelerate as the product becomes increasingly familiar to worldwide consumers. To begin to staff the new production facilities, Access People should conduct

• A) A market search.
• B) A utilization survey.
• C) An inventory calculation.
• D) A demand forecast.
• E) Recruitment scheduling.

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Definitions:

Direct Materials Variances

The difference between the budgeted cost of direct materials and the actual cost incurred.

Fixed Overhead

The portion of total overhead costs that do not change with the level of production or activity within a certain range.

Property, Plant, and Equipment

Long-term tangible assets used in the operation of a business, not expected to be converted to cash in the next year.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives.