When a Frito-Lay Salesperson Takes an Inventory of Doritos Chips

question 14

Multiple Choice

When a Frito-Lay salesperson takes an inventory of Doritos chips to ensure that the snacks are in adequate supply on retailers' shelves, what form of buying decision does the store manager engage in?

• A) new buy
• B) modified rebuy
• C) straight rebuy
• D) team rebuy
• E) need rebuy

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Definitions:

Direct Labor Wage Rate

The amount paid per hour or per unit of production to employees who directly manufacture or assemble products.

Raw Materials Cost

The total expense associated with the raw materials used in the production of goods or services.

Administrative Expense

Costs related to the general administration of a business, such as salaries of executive officers and costs of general services.

Estimated

An approximate calculation or judgment of a value, number, or quantity, based on limited information.