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NEW QUESTION # 234
A restaurant decided to expand its business to include delivery services, rather than relying on third-party food delivery services. Which of the following best describes the restaurants strategy?
Answer: B
NEW QUESTION # 235
While auditing a marketing department, the internal auditor discovered that the product life cycle model was used to structure the marketing mix. The manager has asked the auditor for advice about increasing advertising of various products. During which stage of the life cycle would it be appropriate to advertise that the company's product is the lowest price and best quality of all competitors?
Answer: C
Explanation:
The maturity stage is the ideal time for advertising lower prices and superior quality because this is the period during a product's life when competition is greatest. Due to the availability of many alternatives or substitutes, a firm has reasons to set itself apart. Because price and quality are both concerns of customers during the maturity stage, it is ideal for the firm to differentiate its product by advertising low prices and higher quality.
NEW QUESTION # 236
A firm must decide the mix of production of Product X and Product Y. There are only two resources used in the two products, resources A and B. Data related to the two products is given in the following table:
What is the appropriate objective function to maximize profit?
Answer: A
Explanation:
The objective function is the function to be optimized. This firm wishes to maximize profits
on the sales of two products (X and Y). Based on profits per unit (US $8 and US $6, respectively), the objective function is 8X + 6Y.
NEW QUESTION # 237
A customer intended to order 100 units of product 296014, but incorrectly ordered nonexistent product 296015. Which of the following controls most likely would detect this error?
Answer: C
Explanation:
Check digit verification is used to identify incorrect identification numbers. The digit is generated by applying an algorithm to the ID number. During input, the check digit is
recomputed by applying the same algorithm to the entered ID number.
NEW QUESTION # 238
Which of the following inventory items would be the most frequently reviewed in an ABC inventory control system?
Answer: C
Explanation:
The ABC system is a method for controlling inventories that divides inventory items into three groups: Group A - high-monetary-value items, which account for a small portion (perhaps 10%) of the total inventory usage Group B-- medium-monetary-value items, which may account for about 20% of the total inventory items Group C -- low-monetary-value items, which account for the remaining 70% of sales or usage The ABC system permits the proper degree of managerial control to be identified and exercised over each group. Group A items are reviewed on a regular basis. Group B items may not have to be reviewed as often as group A items, but more often than group C items. For group C, extensive use of models and records is not cost effective. It is cheaper to order large quantities infrequently. The ABC method therefore reduces the safety-stock investment because high-value items are frequently monitored and medium-value items are monitored more often than inexpensive items. Frequent review can prevent stockouts and decrease inventory levels, and the cost of such review is minimized if it is limited to high- or medium-value items.
NEW QUESTION # 239
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