The sales-driven philosophy
a. is based on the belief that you must "produce efficiently and worry about sales later."
b. relies on research to discover consumer preferences before production begins.
c. focuses on personal selling and advertising to persuade customers to buy the company’s output.
d. is strictly cost-driven.
ANSWER: c
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The Takings Clause is triggered by the power of adverse possession.
Answer the following statement true (T) or false (F)
In determining the dollar amount to use for operating assets in the return on investment (ROI) calculation, companies will generally use either net book value or gross cost of the assets. Which of the following is not an argument for the use of net book value rather than gross cost?
A. It eliminates the depreciation method as a factor in ROI calculations. B. It will result in a decrease of ROI each year. C. It is consistent with how assets are reported on the balance sheet. D. It encourages the replacement of old, worn-out equipment.
Horizontal price fixing involves an agreement _____
a. among manufacturers, among wholesalers, or among retailers to set certain prices b. to charge larger retail firms lower prices c. by retailers to charge manufacturer suggested list prices d. by retailers not to sell merchandise below cost
A firm is considering whether to continue to buy a particular component or to make the component themselves. There is no fixed cost associated with buying the component, but each component costs $17 to purchase. If the firm makes the component, it will incur a fixed cost of $5,000, but will be able to produce each component for $10. Which decision below is correct?
a. Make if estimated demand is less than 714.3 units b. Buy if estimated demand is greater than 5,000 units c. Make if estimated demand is greater than 714.3 units d. Buy if estimated demand is greater than 714.3 units