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Jason receives a call from a sales representative of Bell Chime Inc., a manufacturer of inflatable sofabeds. When Jason shows an interest in purchasing a 5-in-1 inflatable sofabed, the sales representative urges Jason to come over to the company's retail outlet. Bell Chime is utilizing:
Opportunity Cost
The potential benefit that is given up when one alternative is selected over another.
Variable Costs
Costs that vary directly with the level of production or sales volume, such as materials and labor.
Eliminate
To completely remove or get rid of something.
Activity-Based Costing
A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each, to more accurately measure the cost and profitability of products/services.
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