Zara Keeps Most of Its Manufacturing Capacity Idle So It

question 104

True/False

Zara keeps most of its manufacturing capacity idle so it can respond to demand changes with more agility than its competitors.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting operating expenses.

Sales Journal

A specialized journal used to record all credit sales transactions of a business.

Cost Center

A department or unit within a business that does not directly generate profit but incurs costs, e.g., customer service or research departments.

Profit Center

A branch or division of a company that is directly responsible for generating its portion of the company's overall profit.