Which of the Following Is More of a Value Driver

question 51

Multiple Choice

Which of the following is more of a value driver than a cost driver?

• A) superior customer service
• B) economies of scale
• C) learning-curve effects
• D) experience-curve effects

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Definitions:

Work in Process

Inventory items that are in the process of being produced but are not yet completed.

Underapplied Overhead

The situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred, leading to undercosted products.

Predetermined Overhead Rate

A calculation used in cost accounting to allocate overhead costs to products or job orders based on a set formula before the period begins.

Direct Labour-hours

The total number of labor hours spent directly on the production of goods or services.