Service Firms

question 108

Multiple Choice

Service firms:

• A)tend to use a lot of direct materials in addition to billable hours.
• B)tend to incur few indirect costs that cannot be traced to specific clients or accounts.
• C)assign indirect costs to individual clients or accounts based on an allocation base such as billable hours.
• D)use process costing to assign costs to individual clients or accounts.

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Definitions:

Sales Calls

Telephone or in-person visits made by salespersons to potential buyers for the purpose of marketing or selling a product or service.

Sales Call Objective

The specific goal or purpose a salesperson aims to achieve during a sales call, such as introducing a new product, gathering customer feedback, or closing a sale.

Prospect

A prospective client or customer who shows interest in a company's offerings.

Sales Profile

A detailed description of the characteristics, skills, and behaviors of successful salespeople in a particular industry or company.