Which of the Following Is Most Likely to Stimulate Customer

question 101

Multiple Choice

Which of the following is most likely to stimulate customer loyalty?

• A) Coupons
• B) Sweepstakes
• C) Frequent-user incentives
• D) Samples
• E) Premiums

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production of a specific product and include in its cost.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a specific activity base.

Budgeted Manufacturing Overhead

The estimated total indirect costs related to the production process, planned for a specific period.

Cost Driver

A factor that causes or relates to a change in the cost of an activity or a product, such as machine-hours, labor-hours, or material usage.