In the Context of Types of Buyers,which of the Following

question 52

Multiple Choice

In the context of types of buyers,which of the following statements is true?​

• A)​Unlike in business markets, the demand for goods is highly volatile in consumer markets.
• B)Business buyers tend to be smaller in number than consumer buyers.
• C)​Business markets and consumer markets are unrelated to each other.
• D)​Business buyers tend to be smaller in size than consumer buyers.
• E)​Unlike business buyers, consumer buyers are trained as purchasing agents. 

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Definitions:

Contribution Approach

A managerial accounting method that separates fixed costs from variable costs to determine the contribution margin per unit and overall contribution towards fixed costs and profits.

Differential Cost

The difference in total cost that will result from selecting one alternative over another.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and generate profit.

Variable Administrative Expenses

Expenses within the administration sector that fluctuate with the level of business activity, like sales commissions.