Utilitarian Value Is Derived from a Product That Helps the Consumer

question 101

True/False

Utilitarian value is derived from a product that helps the consumer solve problems and accomplish tasks that are a part of being a consumer.

---

Definitions:

Direct Labor Employees

Workers who are directly involved in the manufacturing of products, including those who operate machinery, assemble products, or perform manual labor that can be directly attributed to specific goods or services.

Favorable Variances

Differences between actual and budgeted or standard cost figures that are financially beneficial to a company.

Unfavorable Variances

Differences where actual results are worse than expected, often leading to higher costs or lower revenues.

Raw Materials Inventory

The total cost of all the raw materials that are used in the manufacturing process but have not yet been converted into finished goods.