How Does a House Account Differ from Other Types of Accounts

question 88

Multiple Choice

How does a house account differ from other types of accounts?

• A) A house account is always unprofitable.
• B) A house account is usually too small for attention by a salesperson.
• C) No commission is paid on sales to the house account.
• D) A house account is served by the firm's telemarketing center.
• E) Commissions are split among all the salespeople who service the house account's various locations.

---

Definitions:

Depreciation

The process of allocating the cost of a tangible or physical asset over its useful life, reflecting wear and tear or obsolescence.

Imports

Goods and services purchased by a country from other countries.

Exports

Goods or services produced domestically and sold to buyers in another country.

Gold Standard

A monetary system in which the value of a country's currency is directly linked to a specified amount of gold.