Lennox Just Moved from a Position Where He Dealt with the Consumer

question 171

Multiple Choice

Lennox just moved from a position where he dealt with the consumer market to working as a salesperson in the B2B market. As he considers his new responsibilities, it's likely that he will

• A) find little difference between buyers in the consumer market and those in the business-to-business market.
• B) discover that decision making in the B2B market requires salespeople to be little more than order takers.
• C) learn that industrial buyers generally require more personal service than buyers in the consumer market.
• D) find that B2B buyers tend to purchase more on impulse than consumer buyers.

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Definitions:

Conversion Costs

The combination of direct labor costs and manufacturing overhead costs, representing the costs to convert raw materials into finished products.

Processing Department

A section or unit within a manufacturing facility where a specific type of processing or operation is carried out.

Work in Process

Inventory items that are partially completed in manufacturing or production but not yet ready for sale.

Units Transferred Out

The term used in cost accounting to refer to products or goods that have been completed and moved out of the work-in-process accounts into finished goods inventory.