The Purpose of Merchandising Is Twofold: to Retain a Store's

question 17

True/False

The purpose of merchandising is twofold: to retain a store's loyal customer base and to increase the percentage of total business generated by these loyal customers.

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Definitions:

Fixed Manufacturing Cost

Costs that do not vary with the level of production, such as rent, salaries of permanent employees, and depreciation of factory equipment.

Manufacturing Overhead Cost

The total of all costs associated with manufacturing beyond direct materials and direct labor, including indirect expenses such as maintenance and factory utilities.

Direct Manufacturing Cost

Costs that are directly attributable to the manufacturing process, including direct labor and direct materials cost.

Indirect Manufacturing Cost

Costs associated with manufacturing that cannot be directly tied to a specific product, such as maintenance and utilities.