Robert Is the Product Manager at Digital Digs, LLC, a Company

question 3

Multiple Choice

Robert is the product manager at Digital Digs, LLC, a company that manufactures computer accessories. He is known for his effectiveness and efficiency, qualities that are highly regarded in the company where he works. Which of the following can be fittingly inferred with regard to Digital Digs?

• A) Its products meet consumer needs, but are too expensive for them to buy.
• B) Its products meet consumer needs at a price they can afford.
• C) Its products are usually nondurable.
• D) Its products have limited utility.
• E) Its products are mostly complex in design.

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Definitions:

Overapplied Amount

A situation in cost accounting where the allocated factory overhead costs exceed the actual overhead costs incurred.

Factory Overhead

Indirect costs related to manufacturing, including utilities, maintenance, and factory equipment depreciation.

Machine Hours

A measure of production time, calculated as the total number of hours that machines are operated during a specific period.

Applied Amount

The portion of an allocated or assigned cost to a particular department, project, or product.