In Order to Be Competitive and Achieve Customer Loyalty,a Salesperson

question 73

Multiple Choice

In order to be competitive and achieve customer loyalty,a salesperson should sell:

• A)the generic product.
• B)the expected product.
• C)the most technologically advanced product.
• D)the value-added product.
• E)at the most competitive price.

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Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to units produced, based on a specific activity (e.g., machine hours or labor hours).

Manufacturing Overhead

The indirect costs related to manufacturing that are not directly tied to a specific product, such as factory rent or salary of supervisors.

Allocation Base

A measure or statistic used to distribute indirect costs to different products, services, or business units.

Labor Intensive

A process or industry that requires a large amount of labor to produce its goods or services, often resulting in higher labor costs.