The International Company Makes and Sells Only One Product

question 20

Multiple Choice

The International Company makes and sells only one product. There are 2 divisions, one in France and one in Newcastle.
The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:
French Division Cost Structure


Newcastle Division Cost Structure

- All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the Newcastle Division has budgeted to sell 24,000 units in September, then the total budgeted fixed selling and administrative expenses for September would be

• A)£69,600.
• B)£58,000.
• C)£70,000.
• D)£68,000.

Analyze harmful or destructive consumer behaviors.

Interpret consumer behaviors in real-life scenarios.

Acquaint with various consumer research methodologies.

Distinguish between primary and secondary research.

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Definitions:

Quantity Discounts

Price reductions offered to buyers who purchase in bulk or exceed specified quantities, incentivizing larger orders.

Cycle Counting

An inventory auditing procedure where a small subset of inventory, in a specific location, is counted on a specified day.

Cyclical Items

Goods or services whose demand fluctuates in a predictable pattern over time due to seasonal, economic, or other cyclic factors.

ABC Analysis

A methodology for classifying inventory items based on their importance, where A items are most valuable, followed by B and then C, to prioritize inventory management efforts.