How can having a high backup stock adversely affect a retailer?
What will be an ideal response?
By having a high backup stock, scarce financial resources will be wasted on needless inventory that could be more profitably invested in increasing variety or assortment.
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The essence of marketing is to surpass the competition at the task of creating perceived value
Indicate whether the statement is true or false
Which one of the following statements regarding the application of the lower of cost or market method is true?
a. Generally, market value is greater than replacement cost. b. When the lower of cost or market method is used, inventories are valued at selling price. c. The lower of cost or market method is most commonly applied on a total inventory basis because it is a more conservative approach. d. The lower of cost or market method is an exception to the historical cost principle.
In a keep or drop decision:
a. variable costing income statements should be provided. b. absorption costing income statements should be provided. c. fixed costs should be ignored. d. sunk costs should be included. e. None of the answers are correct.
Which of the following is not one of the things organizations need to do to create a culture of innovation?
a. Modify or create new myths. b. Use value systems and behavioral norms. c. Physical artifacts and surroundings. d. Excessive workload demands.