Small Local Businesses

question 1

Multiple Choice

Small local businesses

• A) cannot afford direct marketing
• B) use less sophisticated direct marketing than larger companies
• C) do not have customer details
• D) use direct marketing primarily to generate awareness

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Definitions:

Cost Allocation

The process of assigning indirect cost to a cost object, such as a job.

Factory Overhead

The indirect costs associated with manufacturing, including utilities, maintenance, and salaries of employees not directly involved in production.

Cost Object

The object or segment of operations to which costs are related for management’s use, such as a product or department.

Machine Operator

An individual responsible for running the machine effectively, performing maintenance, and ensuring smooth operation during the production process.