It Is Essential That Salespeople Do Not Overpromise to Buyers

question 65

Multiple Choice

It is essential that salespeople do not overpromise to buyers on written sales proposals but still maintain a positive and supportive tone because written sales proposals:

• A) provide a permanent record of claims and intentions.
• B) do not bind a selling organization to anything in particular.
• C) are easy to write and do not take a lot time to put together.
• D) are always more effective than oral presentations.
• E) do not have to vary from customer to customer.

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Definitions:

Standard Labour Rate

The predetermined wage rate used for budgeting and variance analysis, representing the expected cost per hour of labor.

Standard Labour Hours

The predetermined amount of labor time that is expected to be necessary to produce one unit of a product or complete a process.

Material Price Variance

The difference between the actual cost of materials and the standard cost, multiplied by the quantities purchased.

Standard Quantity

The preset amount of materials or inputs theoretically required to produce a single unit of product under normal operating conditions.