Zara Sources Basic Products Such as White T-Shirts from Low

question 46

Multiple Choice

Zara sources basic products such as white t-shirts from low cost countries because demand is predictable.For trendy products for which demand is unpredictable,Zara sources from company-owned higher cost factories in Europe.For the predictable demand,Zara strives for ________ and for the unpredictable demand,Zara hopes to achieve ________.

• A)social responsibility,quality
• B)flexibility,social responsibility
• C)efficiency,flexibility
• D)quality,efficiency

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Definitions:

Year 2

Typically refers to the second year of a business or project, often used in the context of financial or growth performance analysis.

Variable Costing

An accounting technique that involves only variable costs like direct materials, direct labor, and variable manufacturing overhead in the costing of products.

Absorption Costing

A method of accounting that incorporates all costs related to manufacturing—including direct materials, direct labor, and all manufacturing overheads, whether fixed or variable—into the product's cost.

Carrying Value

The book value of an asset on a balance sheet, representing its acquisition cost minus depreciation or amortization.