An Incremental Close Is Especially Appropriate for a Product

question 12

Multiple Choice

An incremental close is especially appropriate for a product:

• A) with a direct sales cycle
• B) with a long, complex sales cycle
• C) that is extremely expensive
• D) that involves a buying committee
• E) that involves few closing clues

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead cost to products or job orders, based on expected overhead costs and a chosen allocation base.

Variable Component

A variable component refers to a part of a cost or expense that varies directly with the level of output or activity.

Fixed Component

A portion of total costs that remains constant, regardless of changes in the production level or sales volume.

Underapplied

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.