Which of the Following Statements Does Not Describe a Reason

question 6

Multiple Choice

Which of the following statements does not describe a reason why noncustomers do not purchase a firm's products?

• A) Noncustomers have low switching costs.
• B) Noncustomers perceive that they have lower-priced alternatives.
• C) Poor distribution makes the firm's product difficult to find.
• D) Noncustomers do not know that the firm's product exists.
• E) Noncustomers have a basic need that the firm's product does not fulfill.

---

Definitions:

Job-Order Costing

A costing method used where unique products or services are produced, assigning costs to specific jobs or orders.

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate manufacturing overhead costs to individual units of production based on a specific activity base, such as labor hours or machine hours.

Automated Shaper

A machine tool that uses computer control for shaping or surfacing metal and other materials.

Gross Margin

The difference between revenue and the cost of goods sold, expressed as a percentage of revenue, indicating the portion of sales income that exceeds the cost of goods sold.