When Shoppers Enter a Large Department Store Such as David

question 84

Multiple Choice

When shoppers enter a large department store such as David Jones or Myer,they are often greeted by sales assistants offering complementary sprays of selected fragrances.Sometimes,the fragrance is sprayed onto a card for the customer to retain and use as a scent inside her handbag.This activity is an example of ________.

• A)public relations
• B)product publicity
• C)sales promotion
• D)lobbying
• E)advertising

---

Definitions:

Fixed Manufacturing Overhead

Fixed manufacturing overhead costs are those production expenses that do not change with the volume of production, such as rent and salaries.

Absorption Costing

A bookkeeping system that integrates all costs, both direct and indirect, associated with the production of a product into its final cost.

Direct Labor

The wages and salaries paid to employees who are directly involved in the production of goods or the provision of services.

Manufacturing Overhead

Costs in the production process that are not directly tied to a specific product, such as factory utilities or salaries of supervisors.