The Sales Department at a Local Company Determines That Product

question 48

Multiple Choice

The sales department at a local company determines that Product A will moderately boost sales and have a shorter production schedule, so it is decided that this product will be manufactured and sold without considering other options.In choosing this product, the sales department is

• A) controlling.
• B) engaged in bounded rationality.
• C) suboptimizing.
• D) satisficing.
• E) using procedures and rules of thumb.

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Definitions:

Economic Order Quantity

A method of inventory control that places new orders when inventory levels fall to predetermined points.

Critical Path

The longest pathway in a CPM/PERT network.

Liquidity Ratios

Financial metrics used to evaluate a company's ability to pay off its short-term liabilities with its liquid assets.

Current Assets

Financial assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.