With the Time and Material Pricing Method, the Hourly Time

question 33

Multiple Choice

With the time and material pricing method, the hourly time charge is typically set equal to:

• A) the hourly labor cost.
• B) the hourly labor cost + annual overhead.
• C) the hourly labor cost + an hourly overhead charge + an hourly charge to cover the profit margin.
• D) annual overhead + an hourly charge to cover the profit margin.
• E) the hourly labor cost + an hourly charge to cover the profit margin.

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Definitions:

B₂B Sales

Business-to-Business sales involve transactions between businesses, such as between a manufacturer and a wholesaler, or a wholesaler and a retailer.

Decision Maker

An individual or group responsible for making choices that influence outcomes, particularly in business or organizational contexts.

Personal Selling Process

A sequence of seven steps that salespeople follow to acquire new customers and obtain orders: prospecting and qualifying; preapproach; approach; presentation; handling objections; gaining commitment; and follow-up.

Qualified Prospects

Potential customers who have been researched and evaluated and are deemed to have a high likelihood of becoming buyers.