"DMU" Refers to Which of the Following

question 98

Multiple Choice

"DMU" refers to which of the following?

• A)Where most organizational buying tends to involve more than one individual and is often in the hands of a buying centre
• B)Where most consumer decisions involve one individual, or unit
• C)Where consumers buy according to a decision tree, weighing up the pros and cons of every product under consideration
• D)Where purchasing departments of organizations are sometimes referred to as DMU departments

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Definitions:

Variable Selling Expense

Costs that vary directly with the volume of sales, such as commissions and shipping charges.

Shipping Costs

Expenses associated with the transportation of goods from the supplier to the point of sale or end-user.

Contribution Margin

The amount remaining from sales revenues after all variable expenses have been deducted.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, i.e., they remain constant regardless of the level of production or sales.