Which of the Following Statements Is True

question 16

Multiple Choice

Which of the following statements is True?

• A) Divorced families usually have more discretionary income than traditional families.
• B) Singles and young couples are less willing to try new products than are older couples.
• C) Empty nesters are frequently big spenders.
• D) Buying responsibility and influence vary little from one family to another.
• E) None of these statements is True.

---

Definitions:

Machine-Hour

A unit of measure representing the operation of a machine for one hour, often used in allocating manufacturing overhead costs.

Variable Overhead

Costs of overhead that vary with the level of production activity, such as utilities for machinery or materials handling expenses.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a certain activity base.

Variable Component

The part of a cost or expense that varies directly with the level of activity or production volume, in contrast to fixed costs.