A Building Supply Company Has Many High-Volume Customers and Many

question 115

Multiple Choice

A building supply company has many high-volume customers and many low-volume customers. A CRM system would be LEAST likely to help management decide to use which of the following methods for communicating with low-volume customers?

• A) Every November, send each customer a new calendar that has the phone number of the building supply company printed on the cover.
• B) Once or twice a year, mail a new product catalog to each customer.
• C) Every few months, have a customer service representative from the building supply company call each customer.
• D) Have a sales representative make a personal one-on-one appointment with every low-volume customer at least twice a month.
• E) Give each low-volume customer the company Web address to check building supply products sold by the company.

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Definitions:

Weighted-Average Method

A cost accounting method that calculates the cost per unit by dividing the total cost by the total number of units produced, considering the weight of each batch.

Conversion Cost

The cost incurred to convert raw materials into finished goods, including labor and manufacturing overhead costs.

Process Costing

A costing method used for homogeneous products, where costs are accumulated over a period and assigned to units produced, typically in manufacturing.

Weighted-Average Method

It's a strategy to calculate the ending inventory and cost of goods sold by applying the average price of all items on offer during the timeframe.