Heinz, in Order to Boost Its Sales, Came Up with Ketchup

question 14

Multiple Choice

Heinz, in order to boost its sales, came up with ketchup in gross green and funky purple colors. It packaged the ketchup in EZ Squirt dispensers molded to fit little hands. This is an example of:

• A) Product development.
• B) Market development.
• C) Diversification.
• D) Market penetration.

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Definitions:

Indirect Production Costs

Expenses related to the production process that cannot be directly linked to a specific product, often including maintenance, supervision, and factory utilities.

Direct Material

Raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant portion of the product's cost.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or job orders based on a selected activity base.

Direct Labour Hours

The total time workers spend producing goods or delivering services, directly tied to the production output.