A Firm Has Found That It Provides a 90 Percent

question 5

Multiple Choice

A firm has found that it provides a 90 percent order fill rate (orders shipped complete) ,90 percent on-time delivery,90 percent of its orders arrive at customers' destinations in perfect condition,and 90 percent of the time all documentation is correct.These are all of the elements of a perfect order for this company's customers.If the firm improves its performance in on-time delivery to 98 percent,what is its new perfect order performance?

• A)88 percent
• B)98 percent
• C)0 percent
• D)80 percent
• E)71.4 percent

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Definitions:

Collectibility

The likelihood or ability of a company to collect its accounts receivable from customers.

Sales Price

The amount of money for which a product or service is sold in the market.

Revenue In Full

The total amount of income generated by the sale of goods or services before any deductions are made.

Percentage-Of-Completion

An accounting method that recognizes revenues and expenses in proportion to the completion of a contracted work or project.