Test Prep 9

A large car manufacturer purchases materials that it will use to create parts for vehicles. The car manufacturer is a(n)

• retailer

• agent

• wholesaler

• industrial user

Which of the following expenses is considered a fixed cost:

• Cost of goods sold

• Shipping charges

• Sales commissions

• Insurance

Businesses that price their goods and services higher than what most customers are willing to pay are likely to

• increase profit.

• improve demand.

• reduce costs.

• lose sales.

You buy some batteries that have information about their money-back guarantee printed on their packaging. This information is intended to __________ you.

• remind

• persuade

• protect

• inform

One of the main reasons that companies gather marketing information is to be able to

• track past sales trends

• answer customer complaints

• monitor inventory records

• increase sales and profits