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Paul Is a Sales Representative at Midwest Mazda and Recently

question 140

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Paul is a sales representative at Midwest Mazda and recently sold a CX9 to Summer and Brian for their growing family. Paul knows how important it is to reassure his clients that they've made the right decision and usually calls his customers within 2-3 days of purchase to ask what they think so far and remind them of all the great features. He provides lots of reassurance and wants his customers to know he cares about them and values their business. Which of the following is a possible reason why Paul might contact his customers and provide reassurance they made the right purchase decision?


Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing a product, which includes costs not directly tied to the product such as maintenance, utilities, and supervisor salaries.

Underapplied Manufacturing Overhead

Refers to the situation when the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Manufacturing Overhead Control

A way of monitoring and managing the costs associated with the indirect elements of production, such as utilities, maintenance, and factory supplies.

Overhead Costs

All costs on the income statement except for direct labor, direct materials, and direct expenses, covering expenses like rent, utilities, and insurance.

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