Frito-Lay, Which Is Widely Known for Producing Chips and Other

question 139

Multiple Choice

Frito-Lay, which is widely known for producing chips and other snack products, tried to introduce Frito-Lay lemonade. The reason this new product failed is likely because of

• A) poor timing.
• B) the failure to match product offerings to customer needs.
• C) technical problems.
• D) overestimation of market size.
• E) ineffective branding.

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Definitions:

Raw Materials Inventory

The stock of basic materials that are used in the manufacturing process and are awaiting to be processed.

Cost of Goods Sold

The immediate expenses associated with manufacturing the products a company sells, comprising both materials and labor.

Merchandise Inventories

Goods that a company intends to sell in the ordinary course of business, valued at the lower of cost or market.

Cash Collections

The process of receiving payments from customers for goods or services provided.