Which of These Statements About Formula Presentations Is True

question 14

Multiple Choice

Which of these statements about formula presentations is true?

• A) The formula presentation is based on the SPIN procedure of developing and giving the sales presentation.
• B) New-task buying situations are a good time to use the formula presentation method.
• C) An advantage of the formula presentation is that it is most adaptable to complex selling situations.
• D) Customers get the greatest amount of talking time at the beginning of the formula sales presentation.
• E) To successfully use the formula sales presentation method, the salesperson must have previously identified the prospect's needs and wants.

Acknowledge the criteria for recording contingent liabilities.

Understand the components of employee compensation related to future benefits.

Recognize the accounting practices for payroll management and control.

Understand federal unemployment tax responsibilities.

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Definitions:

Common Fixed Expenses

Costs that do not vary with the level of production or sales over a certain period and are shared among different segments or products of the business.

Absorption Costing

This accounting approach incorporates every manufacturing expense, such as direct materials, direct labor, plus variable and fixed overhead costs, into the product's total cost.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Product Costs

The costs directly associated with the creation of a product, encompassing direct materials, direct labor, and manufacturing overhead.