The Job of the Concepts Managers at Starbucks Is to Use

question 103

Multiple Choice

The job of the concepts managers at Starbucks is to use a cross-functional team to develop four to six new beverages annually. Starbucks uses a cross-functional team because it .

• A) allows the company to use employees from various departments with varying perspectives to attack the task
• B) creates a means for outsourcing new-product development
• C) allows Starbucks to use an aggregated product plan
• D) ensures that Starbucks will always have products in each stage of the product life cycle
• E) allows the company to get input from all of its external stakeholders

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that reduces accounts receivable to reflect the estimated amounts that are expected to be uncollectible.

Uncollectible Percentage

An estimated fraction of accounts receivable that a company does not expect to collect.

Aging

A method used in accounting to categorize accounts receivables based on the length of time an invoice has been outstanding.

Allowance Account

An account used in accounting to reduce the value of accounts receivable to a more realistic amount by accounting for potential bad debts.