Sam's Merchandise Is Sold in Large Quantities and Stacked High

question 61

Multiple Choice

Sam's merchandise is sold in large quantities and stacked high on metal shelving. This merchandising gives the customer a message of low prices. Which of the following merchandising techniques is Sam's using?

• A) Tonnage merchandising
• B) Price lining
• C) Color presentation
• D) Frontage presentation
• E) Atmospherics

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Definitions:

Variable Manufacturing Overhead

Indirect manufacturing costs that vary with the production volume, such as utilities for machinery.

Standard Costs

Pre-determined or estimated costs used for planning and control purposes, often used to measure performance by comparing them with actual costs.

Direct Labour

The wages and other compensation paid to employees who are directly involved in producing goods or providing services.

Labour Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost of labor for the actual production level.