Examlex
In what type of sales situations should a salesperson use benefit statements?
Absorption Costing
An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.
Product Costs
All costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. Also see Inventoriable costs.
Manufacturing Costs
Expenses directly related to the production of goods, including direct materials, direct labor, and manufacturing overhead.
Contribution Margin
The difference between sales revenue and variable costs of a product or service, used to cover fixed costs and generate profits.
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