A Buyer Saying "The Price Is Lower Than I Thought

question 95

Multiple Choice

A buyer saying "The price is lower than I thought it would be" is communicating a(n) ____.

• A) Commitment signal
• B) Objection
• C) Trial commitment
• D) Confirmed benefit
• E) None of the above are accurate

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Fixed Manufacturing Overhead

is the sum of all the production costs that do not change with the level of output, including costs like factory rent, salaries of permanent employees, and depreciation of factory equipment.

Direct Labour

Labor of employees engaged directly in the manufacturing process or production work, essential for creating the product.

Operating Leverage

Operating leverage is a measure of how revenue growth translates into growth in operating income, indicating the degree to which a company can increase profitability through its fixed costs structure.