Which of the Following Statements Is True Regarding Organizational Versus

question 175

Multiple Choice

Which of the following statements is true regarding organizational versus consumer buying decisions?

• A)Perceived risk is lower in organizational buying.
• B)Reciprocal arrangements exist.
• C)More organizational buying decisions are lower in involvement.
• D)Organizational buyers are more influenced by lifestyle factors.

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Definitions:

Cost of Goods Sold

The costs directly associated with producing a company's goods for sale, including expenses for labor and materials.

Inventory Account

Inventory Account is an asset account on the balance sheet that reports the value of a company's inventory - raw materials, work-in-process, and finished goods.

Factory Overhead

Manufacturing costs that are not raw material or direct labor costs.

Raw Materials

The basic materials from which products are manufactured or made.