The Method of Using Extreme Positions During the Concessions and Agreement

question 3

Multiple Choice

The method of using extreme positions during the concessions and agreement stage of negotiation involves ________.

• A)careful timing of the disclosure of information and concessions
• B)approaching the issue in a holistic manner
• C)general and polite conversation to socialize
• D)building mutual trust before embarking on business discussions

Recognize the use of ABC information in identifying cost improvement opportunities.

Grasp the method of calculating estimated total factory overhead cost for a product using ABC.

Identify the inadequacies of using a single plantwide factory overhead rate in diverse production environments.

Understand the impact of accurate product costing on managerial decisions such as product pricing and mix.

---

Definitions:

Ceteris Paribus

A Latin term meaning "all other things being equal," used to isolate the effect of one variable in a economic model.

Variables

Elements, features, or factors that are liable to vary or change, often used in mathematical models or experiments to calculate outcomes or effects.

Positive Statement

An objective statement based on factual evidence that can be tested and validated as true or false.

U.S. Dollar

The official currency of the United States, used as a standard monetary unit for many international transactions.