There Are a Lot of Skateboards on the Market, but When

question 170

Multiple Choice

There are a lot of skateboards on the market, but when it was launched the BMW Streetcarver was the only one with stabilizers and wheel design based on BMW's automobiles. This technology gave the BMW Streetcarver better control at high speeds and around sharp turns than any other brand. The skateboard was priced at $495, which left many consumers (especially young males) who might have wanted to buy the Streetcarver unable to afford it. This inability to pay for the high-priced BMW-made skateboard shows the effect of __________ on sales.

• A)demand factors
• B)macroeconomic environmental factors
• C)barter factors
• D)supply factors
• E)exchange parameters

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to products based on a certain activity, like labor hours or machine hours.

Direct Labor-hours

The sum of working hours of employees directly engaged in producing goods.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and management salaries, not directly tied to direct materials or direct labor.

Predetermined Overhead Rate

A rate used in cost accounting to allocate overhead costs based on an estimated activity level.