When Department Stores Centralize All Buying Activities, Department Managers Spend

question 62

Multiple Choice

When department stores centralize all buying activities, department managers spend more time working with departmental associates and talking with customers. The result of this is that the company is better able to understand the expectations of the customers. Which of the following service gaps is reduced as a by-product of the centralization?

• A) performance
• B) research
• C) communication
• D) standards
• E) knowledge

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Definitions:

Double-Declining-Balance Method

An accelerated depreciation method that expenses more of an asset’s cost closer to the beginning of its usable life.

Depreciable Asset Accounting

The accounting process that involves allocating the cost of a tangible asset over its useful life.

Depreciation Expense

The portion of the total cost of a depreciable asset that is allocated as an expense to the income statement in a given period.

Residual Value

The estimated value of a leased asset at the end of the lease term, or the expected value of an asset after its useful life ends.