Extracts from Cost Information of Hebar Corp

question 73

Multiple Choice

Extracts from cost information of Hebar Corp.:

Assuming that setup-hours is considered a more effective cost drive for allocating setup costs than direct labor-hours.Which of the following statements is true of Hebar's setup costs under traditional costing?

• A)L3 pack is undercosted by $5,850
• B)L7 pack is undercosted by $5,750
• C)L3 pack is overcosted by $5,850
• D)L7 pack is overcosted by $5,850

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Definitions:

Unconscious Need Level

The level at which people do not know why they buy a product.

Perceptive Observations

The act of keenly and accurately noting and interpreting subtle details or changes, often critical in understanding context or behaviors in various fields like psychology, sales, and research.

Skillful Questioning

The technique of asking insightful and relevant questions to gather information, clarify understanding, and lead conversations effectively.

Trial Close Question

A sales technique involving a question posed by the salesperson to gauge the prospect’s readiness to buy, often before the final close.