ACE Electronics Introduces a New Voice-Activated Personal Computer That No

question 98

Multiple Choice

ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be

• A)survival.
• B)cash flow.
• C)competition.
• D)return on investment.
• E)profit.

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Definitions:

Direct Materials

Direct materials are raw materials that are directly used in the manufacturing process of a product and are easily identifiable and measurable.

Cost of Goods Manufactured

Refers to the total production cost incurred by a company to manufacture products in a specific period, including materials, labor, and overhead costs.

Factory Overhead

All manufacturing-related costs excluding those for direct labor and direct materials.

Direct Labor Costs

Expenses associated with employees who directly contribute to the production of goods or services.