Which of the Following Allocation Bases for Automation Costs Would

question 105

Multiple Choice

Which of the following allocation bases for automation costs would be an improvement over direct labor hours?

• A) Number of units sold
• B) Direct labor costs
• C) Machine hours
• D) Direct material cost

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Definitions:

Demand-oriented Approach

focuses on understanding and meeting the existing demand of consumers as the primary strategy for product development and marketing.

Prestige Pricing

A pricing strategy where goods are priced high to present a perceived value of exclusivity and luxury.

Talbots Label

Talbots Label is a brand focusing on classic women's clothing, shoes, and accessories, known for offering timeless pieces with a modern twist.

Penetration Pricing

Setting a low initial price on a new product to appeal immediately to the mass market.