Many Automobile Dealerships Employ a Non-Negotiable or "No Haggle" Price

question 153

Multiple Choice

Many automobile dealerships employ a non-negotiable or "no haggle" price strategy to sell their cars.A customer who wants to buy a new or used car would pay the posted price.These dealers probably adopted this pricing policy because

• A)the industry was discussing the abandonment of self-regulation practices.
• B)women have an intense dislike of price negotiation,yet still want to buy a car.
• C)many recent immigrants into the United States were not accustomed to negotiation.
• D)women distrust men in general and car salesmen in particular.
• E)a sluggish economy guaranteed that negotiations would produce a less than adequate return on investment.

---

Definitions:

Activity Measure

A metric used to quantify the level of activity, productivity, or performance in a specific area, often used in managerial accounting to allocate costs.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity.

Overhead Costs

Indirect costs not directly tied to the production of goods or services, such as rent, utilities, and administrative expenses.

Flexible Budget

A flexible budget adjusts expenses based on changes in actual revenue or other activity levels, providing a more accurate comparison of budgeted versus actual performance.