The 80/20 rule is more likely to apply to a firm that uses intensive distribution than a firm that uses selective distribution.
Answer the following statement true (T) or false (F)
True
According to the 80/20 rule, 80 percent of a company's sales often come from only 20 percent of its customers until it becomes more selective in choosing customers. Hence it is more applicable to firm that uses intensive distribution.
You might also like to view...
John is the owner of a chain of restaurants in Texas. When tilers from Johnson Tiles were laying tiles in one of the restaurants' newly refurbished restrooms, John calmly tells the salesperson of Johnson Tiles, "We need to renegotiate the price of these tiles. I have learned that you charge a 50 percent markup, and as a small-business owner, I find that unacceptable." Which of the following win-lose strategies is most likely being used by John in this scenario?
A. Ambush negotiating B. Browbeating C. Limited authority D. Red herring E. Lowballing
A valuable planning matrix that will reveal opportunities of growth can be created by combining the ________
A) market development index with the share development index B) market share index with the share potential index C) market share index with the share development index D) current market demand with the market potential E) current market demand with the market development index
Which of the following procedures is not usually performed by the accountant during a review engagement of a nonpublic entity?
A. Reading of the financial statements to determine if they conform with generally accepted accounting principles. B. Inquiry about actions taken at meetings of the board of directors that may affect the financial statements. C. Communication of any material weaknesses discovered during the consideration of internal control. D. Issuance of a report stating that the review was performed in accordance with standards established by the AICPA.
Which of the following is a highly suspicious financial statement relationship?
a. Increased revenues with increased cash flows b. Increased volume with decreased cost per unit c. Increased inventory with decreased payables d. Increased inventory with increased warehousing costs