Product Lines That Produce Different Variations (Models,styles or Colours)often Require

question 147

Multiple Choice

Product lines that produce different variations (models,styles or colours) often require specialised manufacturing activities that translate into:

• A)fewer indirect costs for each product line.
• B)greater overhead costs for each product line.
• C)decisions to drop product variations.
• D)a greater number of direct manufacturing labour cost allocation rates.

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Definitions:

Common Input

A resource, such as raw materials or labor, that is shared among different processes or production lines within manufacturing or service delivery.

Further Processing

Additional operations carried out on a product to enhance its value before final sale.

Split-off Point

The stage in a production process where multiple products are generated from a common input and can further be processed or sold separately.

Joint Processing Costs

Expenses incurred during the processing of two or more products simultaneously before they are separable.