The Most Critical Factor to Be Considered When Setting Up

question 25

Multiple Choice

The most critical factor to be considered when setting up a sales route is:

• A) number of miles traveled.
• B) traffic signals in the route.
• C) fuel consumption.
• D) sales experience.
• E) travel time.

---

Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and considered a part of the product's cost.

Direct Labour Hours

This term describes the actual hours worked by employees who are directly involved in the manufacturing process.

Strategic Objectives

Long-term goals that an organization aims to achieve to implement its strategy and fulfill its mission.

Discretionary Fixed Costs

Those fixed costs that arise from annual decisions by management to spend on certain fixed cost items, such as advertising and research.