Olga Is the Sales Rep for ATV Communication Systems

question 152

Multiple Choice

Olga is the sales rep for ATV Communication Systems.She wants to bid on the RFP issued by Manitoba University for distance learning technology.She knows she will need to provide considerable information and demonstrations of her firm's technology because Manitoba University is in a new buy situation and does not have

• A) the money to afford it.
• B) any experience with the product it wishes to purchase.
• C) anyone interested in the technology.
• D) any derived demand for the system.
• E) any students who might be interested in distance learning.

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Definitions:

Traditional Costing System

A method of cost accounting that allocates factory overhead to products based on volume-driven measures such as machine hours or labor hours.

Manufacturing Overhead

Consists of all manufacturing costs that are not directly associated with the production of goods, including indirect labor, maintenance, and factory utilities.

Direct Labor-Hours

The compiled working hours of employees directly active in manufacturing tasks.

Activity-Based Costing

A method of allocating overhead and indirect costs to specific products or projects based on their consumption of resources.