Which of the Following Is a Similarity Between a Production

question 46

Multiple Choice

Which of the following is a similarity between a production orientation and a sales orientation?

• A) Both ignore the importance of assessing a firm's internal capabilities.
• B) Both lack an understanding of the needs and wants of the marketplace.
• C) Both place little emphasis on the assessment of manufacturing plants and facilities.
• D) Both fail in a market where demand exceeds supply.

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Definitions:

Net Income

The net profit of a company calculated after expenses and tax deductions from its total revenue.

Net Loss

The amount by which total expenses exceed total revenues in a company, indicating a financial loss.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a specific accounting period before transferring the net income to retained earnings.