A New Supermarket Is Opening Next to an Older Supermarket

question 51

Multiple Choice

A new supermarket is opening next to an older supermarket. While the older supermarket has been in the community for fifty years, the new supermarket has much more room and can therefore carry far more products than the older one. With what force of change will the older store MOST LIKELY have to deal?

• A) political
• B) global
• C) ethical
• D) competitive

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Definitions:

Wages

Payments made to employees for their labour or services, typically calculated on an hourly, daily, or weekly basis.

Direct Materials

The raw materials directly traceable to the production of specific goods or services, considered a variable cost.

Period Cost

Expenses that are not directly tied to the production of goods, such as selling, general, and administrative expenses, which are expensed in the period incurred.

Factory Maintenance Equipment

Tools, machinery, and other equipment used for the upkeep of a manufacturing facility.