The Needs and Benefits Analysis Section of Written Sales Proposals

question 61

True/False

The Needs and Benefits Analysis section of written sales proposals should focus on all of the benefits the seller's product can provide.

Understand the significance of choosing an appropriate cost allocation base in activity-based costing.

Understand and apply the concept of departmental overhead rates.

Comprehend and calculate activity-based costing.

Calculate the company's plantwide overhead rate.

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Definitions:

Economic Profits

The variance between the sum of earnings and the sum of expenditures, encompassing both direct and indirect costs.

Industry Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of that good by all firms in the industry.

Diminishing Returns

A principle stating that as one factor of production increases while others remain fixed, there will eventually be a decrease in the incremental output gained.

Normal Rate

A standard or usual level of financial return on investment or interest on loans.