Which of the Following Would Be an Example of a Constraint

question 68

Multiple Choice

Which of the following would be an example of a constraint in Step 1 of the price-setting process?

• A)We can rely on our reputation for our other products in the line.
• B)Experts are predicting a surge in global demand.
• C)We need to make allowances for large quantity orders.
• D)We should increase the price during the holiday shopping season.
• E)Remember,we don't know what the demand for this new product will be.

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Definitions:

Purchased On Account

Transactions where goods or services are bought on credit, with payment to be made at a later date.

Accounts Receivable

Amounts due to a firm from its clients for goods or services delivered but not yet compensated for.

Subsidiary Ledgers

Detailed records that contain information about specific accounts, supporting the totals recorded in the general ledger.

General Ledger

The master set of accounts that summarize all transactions occurring within an entity, providing a complete record of financial transactions over the life of the company.