Smith Recently Purchased a DVD Player That Caused Problems While

question 62

Multiple Choice

Smith recently purchased a DVD player that caused problems while still in its warranty period. Smith wrote to the manufacturer of the DVD player requesting a replacement. He asked for an adjustment before providing an explanation, assuming that the claim would be granted willingly. The message written by Smith is an example of a(n) _____.

• A)persuasive claim
• B)form message
• C) routine claim
• D) adjustment message

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Definitions:

Cost Behavior

The way in which costs change in relation to changes in a firm’s level of activity or volume of production.

Break-Even Point

The level of sales at which total revenues equal total costs, resulting in no profit or loss for the business.

Variable Costs

Costs that vary directly with the level of production or service activity, such as materials and labor.

Fixed Costs

Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.