Which of the Following Statements Describes a Limitation Associated with Using

question 37

Multiple Choice

Which of the following statements describes a limitation associated with using coupons as sales promotional tools?

• A)Coupons offer price reductions only to those consumers who are price sensitive.
• B)Coupons are often used by consumers who are already loyal to the brand.
• C)Coupons for established brands or products are not redeemed.
• D)Coupons can encourage trial and repeat purchase of a brand.
• E)All of above statements describe limitations associated with using coupons as sales promotional tools.

---

Definitions:

Allocation Rate

A financial metric used to assign indirect costs to different projects or departments within an organization.

Total Overhead

The total of all indirect costs associated with the manufacturing process, including indirect labor, materials, and other expenses necessary for production.

Overhead Allocation

The process of distributing overhead costs to produced goods based on a predetermined method, often reflecting the usage of resources in production.

High-Volume Products

Products that are produced or sold in large quantities, usually characterized by lower per-unit costs due to economies of scale.