Evan Has Just Been Hired as a Product Manager for a Major

question 57

Multiple Choice

Evan has just been hired as a product manager for a major technology firm. Currently, he is making purchases for his new apartment and upcoming job. His purchase of _____ would most likely be done through extended decision making, while his purchase of ____ would be made through limited decision-making behavior.

• A) a new suit; a sofa
• B) a toaster; bed sheets
• C) coffee maker; flat screen TV
• D) flat screen TV; bath towels
• E) coffee maker; groceries

---

Definitions:

Budgeting Process

The activity of preparing a detailed financial plan for achieving the financial and operational goals of an organization.

Prime Costs

The combined costs of direct materials and direct labor that are directly attributable to the production of goods.

Production Budget

A Production Budget is an estimate of the number of units that must be manufactured to meet sales goals and, therefore, it details the cost of raw materials, labor, and other resources necessary for production.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.