Sales commissions would be excluded from special order decision analysis because
A) the customer approached the company directly.
B) they are fixed costs and therefore irrelevant.
C) they are administrative expenses.
D) they are relevant variable costs.
A
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Strategic structural decisions are ______.
A. long-term decisions about a firm’s capacity and facilities B. short-term decisions about a firm’s processes and technology C. long-term decisions about a firm’s processes and technology D. short-term decisions about product design
Steel Buildings, Inc., agrees to sell four portable garages to Truck Service Center. Five days later, Truck Service refuses delivery and cancels the contract. Steel is entitled to
A. force Truck Service to accept the garages. B. recover any damages from Truck Service but not resell the garages. C. resell the garages and recover any damages from Truck Service. D. resell the garages but not recover any damages from Truck Service.
Executives in Japan decided to price Lexus luxury cars in the United States at $55,000 while pricing them at $66,000 in their own country. This is an example of
A. secondary-market pricing. B. price skimming. C. reference pricing. D. odd-number pricing. E. random discounting.
Regarding business products, which of the following is true?
A. At any one time there are usually fewer target customers for accessories than for installations. B. Accessory equipment is not treated as a capital item. C. Derived demand has little effect on the market for accessory equipment. D. Sellers of accessory equipment usually must face more competitors than sellers of installations. E. Special services and advice are more important with accessories than with installations.