Hideki Has Just Been Transferred from a Position in His

question 16

Multiple Choice

Hideki has just been transferred from a position in his firm where he dealt with the consumer market to a new job dealing with buyers in the B2B market. Which of the following correctly identifies a key difference Hideki is likely to observe between consumer markets and business-to-business markets?

• A) Businesses focus on developing wants and needs in consumer markets, while firms work to satisfy the existing needs of the B2B market.
• B) Relationship marketing tends to be much more important in consumer markets than in the business-to-business markets.
• C) Buyers in the business-to-business markets tend to be more rational than buyers in consumer markets.
• D) Business-to-business markets make greater use of marketing intermediaries such as wholesalers and retailers than do consumer markets.

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Definitions:

Denominator Activity

The total base activity used to allocate overhead costs in cost accounting, such as total direct labor hours or machine hours available.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used in allocating manufacturing overhead.

Overapplied

A condition where the manufacturing overhead allocated to products exceeds the actual manufacturing overhead costs incurred.

Underapplied

A situation in cost accounting where the allocated overhead costs are less than the actual overhead costs.