The result of a stockout is usually an: A)increase in inventory costs. B)increase in lost sales. C)increase in net profit. D)increase in customers.

The result of a stockout is usually an:
A)increase in inventory costs.
B)increase in lost sales.
C)increase in net profit.
D)increase in customers.
by

1 Answer

Answer :

B)increase in lost sales.
by

Related questions

Suppose the inventory manager at Hotpoint intends to lower stockout costs. Which of the following is considered a stockout cost that the manager at Hotpoint might address? A)Price of washing machines B)Sales lost due to short supply of dishwashers C)Order -processing expenses D)Expenses of backordering small appliances

Description : Suppose the inventory manager at Hotpoint intends to lower stockout costs. Which of the following is considered a stockout cost that the manager at Hotpoint might address? A)Price of washing ... to short supply of dishwashers C)Order -processing expenses D)Expenses of backordering small appliances

Last Answer : B)Sales lost due to short supply of dishwashers

Anna Wren, sales manager for Nordic Lumber, tells the firm's inventory manager that failure to have adequate supplies of pressure -treated lumber on hand has cost the firm £175,000 in lost sales. This figure would be used as a component management figures? A)Carrying costs B)Replenishment costs C)Stockout costs D)Safety stock costs E)Reorder costs

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Last Answer : C)Stockout costs

Select the FALSE statement about an inventory system. A)The objective of minimum total inventory cost must be balanced against a customer service level necessary to maximise profits. B)EOQ is the size of inventory that minimises only the cost of carrying inventory. C)There is a tradeoff between inventory carrying costs and the probability of stockouts. D)Inventory carrying costs usually increase as the level of customer service increases.

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Last Answer : B)EOQ is the size of inventory that minimises only the cost of carrying inventory.

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Last Answer : D)unit pricing.

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Walton Food Products decided to use agents to reach industrial accounts several years ago. Logically, this decision was based on which one of the following? A)Steady demand for the firm's products B)Walton's desire to stay close to its customers C)Walton's desire to reduce selling costs D)The willingness of agents to provide market information

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If a company's customers are concentrated in a small geographic area and the company sells technical products, which promotion method will it most likely use? A)Advertising B)Publicity C)Personal selling D)Sales promotion

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Rapid Parcel Service is a transportation company that producers use to forward freight to customers. This example illustrates wholesaling functions performed by: A)sales offices B)sales branches C)public warehouses D)facilitating agencies E)warehousing agencies

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Last Answer : D)facilitating agencies

11) The only service that both rack jobbers and cash -and -carry wholesalers perform is A)personal sales calls on customers. B)providing credit to customers. C)delivering merchandise to customers. D)providing advice to customers. E)physical possession of merchandise.

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Last Answer : E)physical possession of merchandise.

The channel that includes both a manufacturers' agent and an industrial distributor may be appropriate under which of the following circumstances? A)When the firm wants specialised personnel to follow up the work of the sales force B)When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force C)When only one or two channels of distribution are available for products D)When the sales force is large and the marketer is thinking of cutting it down E)When customers are highly concentrated in one geographic area

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Last Answer : B)When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force

Export agents A)bring buyers and sellers from different countries together and collect a commission for arranging sales. B)purchase products from different companies and sell them to foreign countries. C)are specialists at understanding the needs of customers in foreign countries. D)arrange for licensing agreements between domestic and foreign countries.

Description : Export agents A)bring buyers and sellers from different countries together and collect a commission for arranging sales. B)purchase products from different companies and sell them to ... customers in foreign countries. D)arrange for licensing agreements between domestic and foreign countries.

Last Answer : A)bring buyers and sellers from different countries together and collect a commission for arranging sales.

If Nissan finds that it can engineer its Micra to go faster and, regardless of whether or not customers are interested in more speed, decides to make this faster model, Nissan has characteristics associated with the ___________ concept. A)production B)sales C)marketing D)social

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Realising that his new video game will be on the edge of contributing some profit in its second year, Gary lobbies hard to have the accounting department assign other projects in the firm higher levels of certain arbitrarily assigned costs. These costs are called __________ costs. A)fixed B)variable C)traceable common D)nontraceable common

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Last Answer : D)nontraceable common

An example of a marketing cost that is a nontraceable common cost would be A)sales -force salaries. B)rent for production space. C)storage costs. D)salaries of top management. E)selling costs.

Description : An example of a marketing cost that is a nontraceable common cost would be A)sales -force salaries. B)rent for production space. C)storage costs. D)salaries of top management. E)selling costs.

Last Answer : E)selling costs.

Which of the following is NOT a major factor for firms making price decisions? A)Costs B)Competition C)Past sales D)Channel member expectations E)Legal and regulatory issues

Description : Which of the following is NOT a major factor for firms making price decisions? A)Costs B)Competition C)Past sales D)Channel member expectations E)Legal and regulatory issues

Last Answer : C)Past sales

A limitation of sales promotion is that excessive sales promotion efforts directed at price reductions can lead to A)stronger consumer demand for information provided through advertising. B)a decline in the brand's image. C)a decline in the organization's image. D)increased costs of promotion.

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Last Answer : B)a decline in the brand's image.

Which promotion mix ingredient costs considerably more than advertising to reach one person but can provide more immediate feedback? A)Publicity B)Sales promotion C)Personal selling D)Public relations

Description : Which promotion mix ingredient costs considerably more than advertising to reach one person but can provide more immediate feedback? A)Publicity B)Sales promotion C)Personal selling D)Public relations

Last Answer : C)Personal selling

Slow feedback, high costs, and difficulty in measuring effects on sales are disadvantages of which promotion mix ingredient? A)Advertising B)Public relations C)Sales management D)Sales promotion E)Personal selling

Description : Slow feedback, high costs, and difficulty in measuring effects on sales are disadvantages of which promotion mix ingredient? A)Advertising B)Public relations C)Sales management D)Sales promotion E)Personal selling

Last Answer : A)Advertising

The main reason a manufacturer may try to prohibit intermediaries from selling its products outside designated sales territories is to A)tighten its control over distribution of its products. B)discourage competition from other manufacturers. C)incorporate selective distribution. D)contain costs.

Description : The main reason a manufacturer may try to prohibit intermediaries from selling its products outside designated sales territories is to A)tighten its control over distribution of its products. B)discourage competition from other manufacturers. C)incorporate selective distribution. D)contain costs.

Last Answer : A)tighten its control over distribution of its products.

The difference between an agent and a broker is that an agent A)is an intermediary, whereas a broker is not. B)represents the seller and a broker represents the buyer. C)determines who the consumers are, whereas the broker does not determine the customers. D)usually represents people on a permanent basis, whereas a broker usually does so on a temporary basis.

Description : The difference between an agent and a broker is that an agent A)is an intermediary, whereas a broker is not. B)represents the seller and a broker represents the buyer. C)determines who the ... D)usually represents people on a permanent basis, whereas a broker usually does so on a temporary basis.

Last Answer : D)usually represents people on a permanent basis, whereas a broker usually does so on a temporary basis.

In a specific strategic market plan, a profit centre that is self-supporting in terms of sales, markets, production, and other resources is known as: A)profit unit. B)strategic business unit. C)marketing unit. D)small business unit.

Description : In a specific strategic market plan, a profit centre that is self-supporting in terms of sales, markets, production, and other resources is known as: A)profit unit. B)strategic business unit. C)marketing unit. D)small business unit.

Last Answer : B)strategic business unit.

The use of a freight forwarder A)is not always economical for a small firm. B)usually increases transit time and shipping costs. C)usually increases transit time and sometimes lowers shipping costs. D)lowers shipping costs for a large firm. E)usually reduces transit time.

Description : The use of a freight forwarder A)is not always economical for a small firm. B)usually increases transit time and shipping costs. C)usually increases transit time and sometimes lowers shipping costs. D)lowers shipping costs for a large firm. E)usually reduces transit time.

Last Answer : E)usually reduces transit time.

While a poor physical distribution system would affect all elements of a company's marketing mix, the problems associated with a poor system A)can usually be solved by investing more money in the system. B)are usually caused by increased distribution costs. C)can have a negative impact on customer service and satisfaction. D)are usually attributed to problems with order processing.

Description : While a poor physical distribution system would affect all elements of a company's marketing mix, the problems associated with a poor system A)can usually be solved by investing more money ... impact on customer service and satisfaction. D)are usually attributed to problems with order processing.

Last Answer : C)can have a negative impact on customer service and satisfaction.

Sometimes resellers are offered a temporary price reduction for purchasing specified quantities of a product. Such offers are used to provide them with an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in quantities that are considered larger than those usually purchased. What is this sales promotion? A)Push money B)Buy -back allowance C)Buying allowance D)Money -off offer

Description : Sometimes resellers are offered a temporary price reduction for purchasing specified quantities of a product. Such offers are used to provide them with an incentive to handle a new product, to achieve a ... sales promotion? A)Push money B)Buy -back allowance C)Buying allowance D)Money -off offer

Last Answer : C)Buying allowance

If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespersons with larger territories to A)develop larger income potentials. B)have to work longer and harder to generate a certain sales volume. C)work about the same amount, since potential is the same. D)have much larger sales than those salespeople with smaller territories.

Description : If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespersons with larger territories to A)develop ... potential is the same. D)have much larger sales than those salespeople with smaller territories.

Last Answer : B)have to work longer and harder to generate a certain sales volume.

A manufacturer -owned operation that provides services usually associated with agents is a A)facilitating agency. B)wholesaler. C)sales office. D)sales branch. E)public warehouse.

Description : A manufacturer -owned operation that provides services usually associated with agents is a A)facilitating agency. B)wholesaler. C)sales office. D)sales branch. E)public warehouse

Last Answer : C)sales office.

Sales usually start to decline __________ of the product life cycle. A)at the beginning of the termination stage B)at the end of the growth stage C)at the beginning of the decline stage D)during the maturity stage

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Last Answer : D)during the maturity stage

The use of the multiplier: A)allows a seller to increase prices without the buyers' being aware of it.> B)determines totals for groups of items that are priced similarly.> C)allows the seller to change prices without having to issue new price sheets. D)aids a supplier in keeping an accurate record of how many customers are purchasing a group of items.

Description : The use of the multiplier: A)allows a seller to increase prices without the buyers' being aware of it.> B)determines totals for groups of items that are priced similarly.> C)allows the seller to ... )aids a supplier in keeping an accurate record of how many customers are purchasing a group of items.

Last Answer : C)allows the seller to change prices without having to issue new price sheets.

At the beginning of the year, Midtown Athletic had an inventory of $400,000. During the year, the company purchased goods costing $1,600,000. If Midtown Athletic reported ending inventory of $600,000 and sales of $2,000,000, the company’s cost of goods sold and gross profit rate must be a. $1,000,000 and 50%. b. $1,400,000 and 30%. c. $1,000,000 and 30%.

Description : At the beginning of the year, Midtown Athletic had an inventory of $400,000. During the year, the company purchased goods costing $1,600,000. If Midtown Athletic reported ending inventory of $600,000 and sales of $2,000,000 ... a. $1,000,000 and 50%. b. $1,400,000 and 30%. c. $1,000,000 and 30%.

Last Answer : b. $1,400,000 and 30%.

The return on capital employed shows the combined effect of– (A) net profit ratio and inventory turnover ratio (B) operating ratio and net profit ratio (C) net profit ratio and capital turnover ratio (D) gross profit ratio and capital turnover ratio

Description : The return on capital employed shows the combined effect of– (A) net profit ratio and inventory turnover ratio (B) operating ratio and net profit ratio (C) net profit ratio and capital turnover ratio (D) gross profit ratio and capital turnover ratio

Last Answer : Answer: operating ratio and net profit ratio

An example of Balance Sheet ratio is --------------- a) Net profit ratio b) Inventory turn over ratio c) Current ratio d) Fixed asset turn over ratio

Description : An example of Balance Sheet ratio is --------------- a) Net profit ratio b) Inventory turn over ratio c) Current ratio d) Fixed asset turn over ratio

Last Answer : c) Current ratio

When marginal cost is equal to marginal revenue, the firm should A)produce more to increase profits. B)produce less to decrease total costs. C)stop producing additional units to maximise profits. D)provide discounts to encourage purchases.

Description : When marginal cost is equal to marginal revenue, the firm should A)produce more to increase profits. B)produce less to decrease total costs. C)stop producing additional units to maximise profits. D)provide discounts to encourage purchases.

Last Answer : C)stop producing additional units to maximise profits.

For most companies, the main objective of physical distribution is to A)decrease costs while increasing market coverage. B)increase service and market coverage. C)decrease costs while increasing service. D)increase market coverage and channel power. E)balance costs and market coverage.

Description : For most companies, the main objective of physical distribution is to A)decrease costs while increasing market coverage. B)increase service and market coverage. C)decrease costs while increasing service. D)increase market coverage and channel power. E)balance costs and market coverage.

Last Answer : C)decrease costs while increasing service.