Fast Track Company, Which Sells Electronics in Retail Outlets and on the Internet

question 20

Multiple Choice

Fast Track Company, which sells electronics in retail outlets and on the Internet, uses activity-based budgeting in the preparation of its selling, general, and administrative expense budget. Which of the following costs would the company likely classify as a unit-level expense on its budget?

• A)Media advertising.
• B)Retail outlet sales commissions.
• C)Salaries of web-site maintenance personnel.
• D)Administrative salaries.
• E)Salary of the sales manager employed at Store No. 23.

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Definitions:

Add Value

enhancing the worth of a product or service through additional features, improved quality, or enhanced delivery, making it more attractive to consumers.

Customer Service

Customer service encompasses the support and assistance companies offer to their customers before, during, and after a purchase to ensure a satisfying and helpful experience.

Distribution Network

A system of interconnected entities, including manufacturers, warehouses, and retailers, involved in delivering goods from production to the consumer.

Structure

The arrangement or organization of components and systems within a company or process.