Aslowas Ltd Is a Large Merchandiser That Employs Numerous Accounts

question 102

Multiple Choice

Aslowas Ltd is a large merchandiser that employs numerous accounts payable clerks. Their jobs involve processing invoices and paying invoices at regular intervals. Which of the following is the most likely cost driver for the accounts payable activity cost pool?

• A) Number of journal entries
• B) Number of staff in the administration building
• C) Number of invoices processed
• D) Average dollar amount for each purchase

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Definitions:

Objection Handling

The practice of addressing and overcoming potential concerns or objections that a customer has towards purchasing a product or service.

Direct Denial

The method of overcoming objections through the use of facts, logic, and tact.

Competitor's Model

A reference to a product offered by a competing business, often used for comparison in sales and marketing strategies.

Prospect's Objection

A potential customer's resistance or challenge to a sales pitch or proposal.