Follow Up the Sales Relationship May Continue for Years as the the Salesperson

question 60

Essay

Follow up. The sales relationship may continue for years as the salesperson responds to new requests for information. Selling is often described as a process of establishing relationships, not just a matter of selling goods or services. The follow-up step includes handling

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Definitions:

Predetermined Overhead Rate

This rate is used to allocate overhead costs to products or services based on a specific formula, often involving direct labor hours or direct material costs, aiding in the budgeting and costing process.

Direct Labor Costs

The wages and related benefits paid to employees who are directly involved in the production of goods or the provision of services.

Factory Overhead Applied

Costs associated with the production process that are not directly tied to a specific product, such as depreciation or utilities, allocated to products based on a systematic approach.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a particular activity (e.g., machine hours, labor hours).