A Company That Produces Less Than Its Planned Volume for a Year

question 48

Multiple Choice

A company that produces less than its planned volume for a year will

• A) underapply overhead.
• B) not have an overhead variance.
• C) overapply overhead.
• D) not necessarily over- or underapply overhead.

---

Definitions:

Utilitarian Needs

Basic or functional needs that consumers seek to fulfill through the acquisition and use of products and services, typically focused on practical benefits rather than emotional satisfaction.

Persuasive Advertising

Communication used to motivate consumers to take action.

Push Strategy

Designed to increase demand by motivating sellers—wholesalers, distributors, or salespeople—to highlight the product, rather than the products of competitors, and thereby push the product onto consumers.

Pulsing Advertising Schedule

A strategy that involves intermittent bursts of advertising, combined with periods of either no advertising or reduced efforts.