Antonio Is Salesperson for ABC Computing and Is Confronting an Objection

question 66

Multiple Choice

Antonio is salesperson for ABC Computing and is confronting an objection. Using the process recommended in the textbook for negotiating buyer resistance, what is the first thing he should do?

• A) listen
• B) acknowledge
• C) assess
• D) respond

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Definitions:

Common Fixed Expenses

Expenses that remain constant in total regardless of changes in the level of activity or volume of output within a certain range.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs and treats fixed manufacturing overhead as a period expense.

Contribution Format

A method of profit reporting that separates fixed and variable costs, highlighting the contribution margin of products, services, or business segments.

Variable Costing

A technique in managerial accounting where only variable production costs are charged to product units, differentiating it from absorption costing by not including fixed overhead.