The Best Approach for a Company to Take When Monitoring

question 127

Multiple Choice

The best approach for a company to take when monitoring its competitors is

• A)watching for increases and decreases in competitors' prices and match them.
• B)analyzing all information that is readily available about competitors.
• C)sending employees to competitors' offices and factories to observe their actions.
• D)developing a system for gathering ongoing information about competitors.
• E)reading important business publications such as The Wall Street Journal.

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Definitions:

Days Inventory Held

The average number of days a company holds its inventory before selling it, reflecting inventory management efficiency.

Inventory

Inventory encompasses the goods and materials that a business holds for the ultimate goal of resale or processing.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and overhead expenses.

Days Receivable Outstanding

Days Receivable Outstanding (DRO) is a financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.