Which of the Following Statements Regarding the Level of Demand

question 42

Multiple Choice

Which of the following statements regarding the level of demand for the goods sold or servicprovided by companiis correct?

• A) If a client's products or services are seasonal, this will affect revenue flow.
• B) If a client operates in an industry subject to changing trends, the client does not risk inventory obsolescence.
• C) If a client's products or services are seasonal, this will not affect revenue flow.
• D) When a product or process is subject to technological change, there is never a risk that the client will be left behind by its competitors.

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing a product or delivering a service.

Fixed Manufacturing Overhead

refers to the manufacturing costs that do not vary with the volume of production, such as rent and salaries.

Job-Order Costing System

An accounting method used to allocate costs to specific jobs or orders, typically used in situations where products or services are distinct and made to order.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products or job orders, calculated before the period begins based on expected costs and activity levels.