Answer the Following Questions Using the Information Below

question 149

Multiple Choice

Answer the following questions using the information below:
Chess Woods Limited produces two products: wooden chess pieces and wooden inlaid chess boards. Under their traditional cost system using one cost driver (direct manufacturing labor hours) , the cost of a set of wooden chess pieces is $325.00. An analysis of the activities and their costs revealed that three cost drivers would be used under a new ABC system. These cost drivers would be equipment usage, storage area for the material, and type of woods used. The new cost of a set of chess pieces was determined to be $298.00 per set.
-The total amount of indirect cost assigned to produce chess pieces using the traditional method is ________ the total amount assigned using ABC.

• A)more than
• B)less than
• C)identical to
• D)None of these answers are correct.

Learn the different ways customer segments can be defined, including behavior.

Understand the meaning and significance of TAM, SAM, and SOM in market analysis.

Acknowledge the crucial phase of refining the product when crossing the chasm, aiming at a glitch-free experience for the early majority.

Comprehend the impact of buyer personas and psychographics on understanding customer behavior.

---

Definitions:

Product Warranty

A guarantee provided by a manufacturer or seller to a buyer, promising to repair or replace the product if necessary within a specified period of time.

Sale Product

Usually refers to the final merchandise available for sale to consumers, differing from raw materials or components used in manufacturing.

Repairing Product

Repairing product involves the process of fixing or restoring a product to its working condition, usually after damage or malfunction.

FICA-Medicare

Part of the U.S. payroll tax that goes towards Medicare, providing health insurance for individuals over 65 and for certain younger people with disabilities.