When McDonald's Comes Up with a New Drink or Sandwich

question 82

Multiple Choice

When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets before releasing it nationwide. When the company does this, it is engaged in

• A)pretesting.
• B)product launch.
• C)test marketing.
• D)product development.
• E)concept testing.

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Definitions:

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure consistency.

Days' Sales Uncollected

Days' sales uncollected is a financial metric that estimates the average number of days it takes for a company to collect payments from its credit sales, reflecting on the efficiency of its credit and collection policies.

Receivables

Amounts owed to a company by its customers for goods or services provided on credit.

Internal Control

Strategies and systems put in place by an organization to maintain the reliability of its financial and accounting data, encourage responsible behavior, and deter deceitful practices.