If a Customer Says to a Sales Representative from Johnson

question 44

Multiple Choice

If a customer says to a sales representative from Johnson Supply,"I've always purchased my supplies from the Ralston Company," this person is raising an objection to:

• A)product
• B)time
• C)need
• D)source
• E)price

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Definitions:

Variable Manufacturing Overhead

Overhead expenses in manufacturing that change in proportion to the amount of production activity.

Raw Materials

The basic materials from which products are manufactured or made.

Quantity Variance

The difference between actual quantity of material or labor used in production and the expected quantity, often leading to cost variations.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating labor and overhead costs.