Jimmy Sells Encyclopedias

question 50

Multiple Choice

Jimmy sells encyclopedias. Every time he knocks on the door, he begins by asking, "Are there any small children in the house?" From there, he asks their age, and if the parent has considered preparing for their future. If the door is not slammed in his face, he begins to list the benefits of owning a set of encyclopedias. He always lists the benefits in the same way and always ends his presentation by saying, "You need to buy your child a set of these books to protect his or her future." Because Jimmy makes no adjustments as he talks to prospect, it can be said that Jimmy is using a(n) _____ presentation.

• A) customized
• B) adaptive
• C) standard memorized
• D) outlined
• E) cause and effect

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for better budget-to-actual comparisons.

Favorable Spending Variance

A situation in which actual spending is less than the budgeted or projected amount, indicating cost efficiency.

Actual Cost

The real cost incurred in the production of goods or services, including all direct and indirect expenses.

Static Planning Budget

A budget based on a single level of activity, not adjusted for changes in activity levels during the period.