For Which of the Following Operations Would Telemarketing Efforts Likely

question 30

Multiple Choice

For which of the following operations would telemarketing efforts likely be the most successful and the most profitable?

• A) selling magazine subscriptions to consumers
• B) selling double-pane windows to home owners
• C) selling plastic bottles to a bottling company
• D) asking people for charitable donations
• E) selling vacation packages to people who earn $50,000 or more annually

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Definitions:

Traditional Costing

A costing method that allocates overhead based on a single predetermined rate, usually ignoring the varying demands different products place on resources.

Direct Labor-Hours

The total number of labor hours spent on the production of goods or services.

Predetermined Overhead Rate

A rate calculated at the beginning of a period, based on the estimated overhead costs and estimated level of activity, used to apply overhead costs to products.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the actual consumption of resources.