A Salesperson Who Asked, "What Impact Does Inventory Shrinkage Have

question 42

Multiple Choice

A salesperson who asked, "What impact does inventory shrinkage have on your ability to make a reasonable profit?" is asking a(n) _____ question as he works his way through the SPIN technique.

• A)situation
• B)problem
• C)implication
• D)benefit
• E)need payoff

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Definitions:

Net Operating Income

The profit generated from the normal operational activities of a business, excluding other income and expenses such as interest and taxes.

Variable Costing

An accounting technique that calculates the cost of a product by considering only costs that fluctuate with the level of production, excluding fixed costs.

Absorption Costing

A costing method that includes all manufacturing costs - both variable and fixed - in the cost of a product.

Unit Product Cost

The total cost associated with manufacturing a single unit of a product, including direct materials, direct labor, and overhead.