A Small Firm Can Try to Increase Sales of an Existing

question 33

Multiple Choice

A small firm can try to increase sales of an existing product by all of the following except

• A) convincing nonusers in the market to become customers.
• B) persuading current customers to use more of the product.
• C) alerting current customers to new uses for the product.
• D) emphasizing diversification.

---

Definitions:

Assembly Department

a division within a manufacturing plant where components are put together to create a final product.

Direct Labor Hour

The amount of time employees directly involved in manufacturing spend on producing a specific unit of output.

Factory Overhead Rates

Calculated rates used to allocate a factory's indirect costs to products being produced, aiding in determining total production costs.

Plantwide Rate

A single, uniform overhead absorption rate used throughout an entire factory or plant, applied to all units irrespective of the department in which the costs were incurred.