Zanda Corp

question 44

Multiple Choice

Zanda Corp.made a decision to use a more expensive mode of transportation to deliver orders to customers.This decision was likely made after an examination of

• A)Cost-to-cost tradeoffs.
• B)Consolidation strategies.
• C)Product availability problems.
• D)Cost-to-service trade-offs.

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Definitions:

Machine-hours

A measure of the time that machines are operating, often used as a basis for allocating manufacturing overhead costs.

Direct Materials Cost

The cost of raw materials and components that are directly used in the production of a product.

Direct Labor-hours

Direct labor-hours are the total time workers spend on producing a particular unit of goods or services.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a certain activity base, such as labor hours or machine hours.