Jane West Is Just Graduating with an MBA and Is

question 116

Multiple Choice

Jane West is just graduating with an MBA and is being recruited by a financial securities brokerage as a sales representative.She has had 10 years of sales experience in selling industrial supplies to the steel industry.She was quite successful in her previous experience,but is worried that selling financial instruments may be more difficult.What factor could be the major reason for her worry?

• A)the problem that her services and the products she sells are inseparable
• B)the fact that services are intangible and, therefore, very different from her previous experience
• C)the marketing program of financial instruments is very inconsistent
• D)the cost inventory management system for reimbursing her when she sells the securities

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Definitions:

Machine-Hours

A measure of production time, referring to the total hours that machinery is operated in the manufacturing process.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead to products based on a certain activity base.

Customizing Department

A specialized department in a company that modifies products to meet specific customer requirements or preferences.

Direct Labor-Hour

A direct labor-hour is a unit of measure representing the labor time directly involved in the production of goods.