The Salesperson Notices the Customer's Face Shows a Puzzled Look

question 17

True/False

The salesperson notices the customer's face shows a puzzled look and asks what needs clarification. The customer replies, "I'd like to know more about how you calculated the estimated cost to use this machine." The salesperson then provides the details. This scenario illustrates two-way communication.

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Definitions:

Markup Percentage

The percentage added to the cost of goods to cover overhead and profit, determining the selling price.

Factory Overhead

Costs associated with production that are not directly tied to individual products, including utilities, maintenance, and salaries of supervisory staff.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the amount of activities used to produce them.

Markup Percentage

The percentage added to the cost of goods to determine the selling price, reflecting the profit margin on sales.