Which of the Following Statements About a Typical Sales-Oriented Business

question 79

Multiple Choice

Which of the following statements about a typical sales-oriented business is TRUE?

• A) The company develops its products to meet the needs of specific groups of people.
• B) The primary goal of the company is profit through customer satisfaction.
• C) The company invests the majority of its resources in promoting its products and services.
• D) The company is in business to satisfy customer wants and needs and deliver superior value.
• E) All of these statements about a typical sales-oriented business are true.

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Definitions:

Separate Sales Forces

This refers to the practice of having distinct teams within a business that focus on selling different products, services, or targeting different markets.

Income From Operations

The earnings generated from a company's regular business activities, excluding any investment income or expenses unrelated to its core operations.

Service Department Expenses

Costs associated with the support departments of a company that do not directly contribute to the production of goods but are necessary for operations.

Activity Base

An activity base is a measure used in cost accounting to allocate overhead costs to products or services, based on activities such as machine hours or labor hours.