Hewlett-Packard Recently Shifted Its Entire U

question 17

Multiple Choice

Hewlett-Packard recently shifted its entire U.S. salesforce into home offices and saved millions in staff salaries and office rent despite the expense of equipping each home office with a notebook computer, fax/copier, mobile phone, two phone lines, and office furniture. Such decreased selling costs are among the benefits of

• A)direct selling.
• B)inbound teleselling.
• C)salesforce networking.
• D)account management policies.
• E)salesforce communication.

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Definitions:

Variable Overhead Rate Variance

This refers to the difference between what the variable overhead costs were expected to be versus what they actually were, measured against the standard cost of production.

Manufacturing Overhead

The indirect factory-related costs that are incurred when a product is manufactured, including costs such as maintenance, utilities, and quality control.

Standard Costing System

An accounting method that uses standard costs for product cost planning and control, involving setting predetermined costs for manufacturing activities.

Variable Overhead Efficiency Variance

Measures the difference between the actual hours taken to produce an item and the standard hours expected, multiplied by the variable overhead rate per hour.