Samson Works for an Electronics Firm

question 13

Multiple Choice

Samson works for an electronics firm. The firm has had a few product flops but Samson thinks that its newest product will be highly successful. Samson's job is to try and convince retailers to carry it. One incentive he decides to use is to undertake a large-scale advertising campaign touting the benefits of the product. He informs retailers that if they choose to carry the product, the company will mention them in their advertisements so interested consumers know where to go to find the product. Samson is using _________________ as an incentive to resellers.

• A) a dealer listing
• B) a dealer loading
• C) a merchandise allowance
• D) cooperative advertising
• E) a premium

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Definitions:

Direct Material Costs

Direct material costs are the expenses for raw materials that can be directly traced to the production of specific goods or services.

Variable Manufacturing Overhead

Costs of manufacturing that vary directly with the level of production, aside from direct labor and materials.

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the volume of production, such as factory rent and salaries of managers.