Under Which of the Following Conditions Is Personal Selling Ideal

question 13

Multiple Choice

Under which of the following conditions is personal selling ideal for life insurance?

• A)When mass communication provides an effective link with the target market
• B)When the final price of the policy is predetermined
• C)When the selling margin is relatively low
• D)When the dispersion of customers cannot enable acceptable advertising economies
• E)When sales promotion is adequate to provide policy-related information needed by buyers

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Definitions:

Standard Costs

Estimated costs associated with manufacturing a product or providing a service, used for budgeting and performance evaluation.

Absorption Costing

An approach to accounting that incorporates all costs associated with manufacturing, including direct materials, direct labor, and all overhead costs, both variable and fixed, into the price of a product.

Normal Operating Capacity

The level of production that a company can sustain under normal circumstances without overstretching its resources or machinery.

Inventory Costs

All costs associated with ordering, holding, and managing inventory, not limited to purchase costs, storage, and carrying costs.