Which of the Following Is Recommended as a Technique for Combating

question 45

Multiple Choice

Which of the following is recommended as a technique for combating the compliance techniques of the typical car salesman?

• A) Get the car dealer's final offer in writing, then leave and go to another dealership and get them to make a better offer in writing, then return to the first dealership.
• B) Make a very low initial offer and stick with it, no matter what.
• C) Negotiate only in the presence of your lawyer, making the dealership pay for the lawyer's fees.
• D) Use the door-in-the-face effect when negotiating with car dealers.

---

Definitions:

Idle Capacity

The portion of a company's resources or production capability that is not currently being utilized to its full potential.

Activity-based Costing

Activity-based costing allocates overhead costs based on the specific activities that contribute to overhead in producing a product or service.

Processing Batches

Groups of items or units processed together in one operation to improve efficiency, often in manufacturing or data processing contexts.

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their usage of activities.