ABC Analysis Would Be of LEAST Value to a Salesperson

question 3

Multiple Choice

ABC analysis would be of LEAST value to a salesperson selling:

• A) clothes to department stores.
• B) MRI equipment to hospitals.
• C) cereal to supermarkets and grocery stores.
• D) pharmaceuticals to drug store pharmacies.
• E) cosmetics to retail outlets.

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Definitions:

ATC

The abbreviation for Average Total Cost, which is the total cost divided by the number of goods produced.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent or salaries.

Variable Cost

Costs that vary directly with the level of output or production volume, such as materials and labor expenses.

Average Variable Cost

The total variable costs incurred by a firm divided by the quantity of output produced.