Which of the Following Is Not One of the Ways

question 105

Multiple Choice

Which of the following is not one of the ways in which a salesperson can create product liabilities for a company?

• A) Providing express warranties
• B) Over-charging customers
• C) Misrepresentation
• D) Negligence
• E) All of the above can create product liabilities for company

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Definitions:

Variable Cost

Costs that vary directly with the level of production or volume of output, such as raw materials and direct labor.

Fixed Cost

Fixed cost refers to a cost that does not change with the level of output or sales in the short term, such as rent, salaries, or loan payments.

Sunk Cost

Costs that have already been incurred and cannot be recovered or altered.

Incremental Revenues

Additional income received from a particular action or decision, beyond what would have been received without it.