During a Sales Call,the Coats & Clark Representative Surprised the Owner

question 62

Multiple Choice

During a sales call,the Coats & Clark representative surprised the owner of 1001 Crafts Store with the gift of a tapestry basket for transporting knitting and crocheting projects.The bag was imprinted with the advertising slogan of a new type of synthetic yarn he wanted the store to carry.The tapestry bag is an example of:

• A) a continuity gift.
• B) a premium.
• C) a trade deal.
• D) advertising specialty.
• E) trade promotion.

---

Definitions:

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor, such as utilities, rent, and salaries for managers.

Direct Labor

The labor costs directly traceable to the production of goods, including wages of workers on the production line.

Factory Overhead

All manufacturing costs that are not directly related to the production of goods, including costs associated with operating the factory.

Overhead Costs

Fixed and variable costs incurred in the operation of a business that do not directly contribute to the production of goods or services.