A Chain of Specialty Fashion Stores Has Interviewed a Sample

question 111

Multiple Choice

A chain of specialty fashion stores has interviewed a sample of its female customers and learned that a customer can be expected to visit the store looking for new merchandise on average every two weeks. The chain of stores was able to set this standard through ____.

• A)evaluating the standard's capacity to enable goal achievement
• B)benchmarking competitors
• C)listening to customers
• D)outsourcing
• E)value communications

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Definitions:

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability excluding interest and income tax expenses.

Total Leverage

The combined effect of using both operating leverage and financial leverage on a company's earnings before interest and taxes (EBIT).

Variable Cost Ratio

The proportion of variable costs to sales or production output, indicating how variable costs change with changes in output.

Operating Costs

Expenses associated with the day-to-day functioning of a business, such as rent, utilities, and salaries, but excluding costs related to production.