Figure 4-2 -Figure 4-2 Shows the Recent Ratings from Independent Rating Agencies

question 44

Multiple Choice

Figure 4-2
-Figure 4-2 shows the recent ratings from independent rating agencies for selected smartphone brands and models for Verizon customers.Which smartphone should be chosen if you want a model that costs less than $600 and has superior camera quality?

• A) Apple iPhone 7
• B) Samsung Galaxy S7
• C) HTC One
• D) LG G5
• E) Motorola Droid Turbo

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Definitions:

Variable Selling Expense

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

Fixed Selling Expense

Costs associated with the selling process that do not vary with the level of sales, such as salaries of sales personnel and rent for sales space.

Variable Administrative Expense

Indirect costs that change in proportion with the level of a company’s production or sales activities.

Fixed Administrative Expense

Expenses that do not change with the level of production or sales over a certain period, related to the administration of a business.