Spin-Off Sales Occur When

question 36

Multiple Choice

Spin-off sales occur when:

• A)a person likes a business product so well he or she buys one for personal use.
• B)advertising is combined with consumer promotions.
• C)retailing is combined with wholesaling.
• D)two related business buyers are identified by the vendor.

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Definitions:

Budgeted Overhead

The projected or estimated indirect costs related to the operation of a business, which could include utilities, rent, and salaries.

Activity Total

The composite or sum total of costs associated with a specific activity or operation within a business.

Standard Costing

A cost accounting method that uses standard costs for direct materials, direct labor, and manufacturing overhead to measure performance.

Cost Control

The practice of managing and reducing business expenses through efficient and effective use of resources.