Which of the Following Statements About Durable Goods Is True

question 90

Multiple Choice

Which of the following statements about durable goods is true?

• A)Durable goods are more likely to require low- involvement decisions than perishable goods.
• B)Durable goods provide a benefit over a long period of time.
• C)Consumers purchasing durable goods typically use habitual decision making.
• D)The information search is quicker for durable goods than it is for nondurable goods.
• E)Product evaluation is more likely to take place for nondurable goods than for durable goods.

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Definitions:

Variable Overhead

Costs that change with the level of production or service activity.

Activity Level

A metric indicating the volume or intensity of operations in a company, affecting its costs and resources.

Fixed Overhead

A set of costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Budget Variance

Budget variance is the difference between budgeted or planned financial performance and the actual performance, indicating whether a business is over or under its budgeted amount.