2008,about 80 Percent of U

question 187

Multiple Choice

2008,about 80 percent of U.S.consumers owned a digital camera because it is easy to use,is relatively inexpensive,and allows images to be uploaded and shared online.And Kodak's sales of digital cameras have been good,moving from a "question mark" to a "cash cow." But in the near future,Kodak's digital camera sales may flatten due to high household penetration,the economic downturn,and increased competition.As a result,its new digital camera sales may come mostly as replacement sales for existing,not new customers.Kodak expects this SBU may become(may remain) a __________ in the near future.

• A) question mark
• B) star
• C) hedgehog
• D) cash cow
• E) dog

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Definitions:

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance of a manufacturing facility.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or job orders, based on estimated costs and activity levels.

Manufacturing Overhead

All manufacturing costs that are not directly attributable to a specific product, including indirect labor, maintenance, and utilities.

Machine-Hours

A measure of the total time machines are in operation during a given period, often used in cost accounting to allocate expenses based on machine usage.