The Best Approach for a Company to Take When Monitoring

question 127

Multiple Choice

The best approach for a company to take when monitoring its competitors is

• A)watching for increases and decreases in competitors' prices and match them.
• B)analyzing all information that is readily available about competitors.
• C)sending employees to competitors' offices and factories to observe their actions.
• D)developing a system for gathering ongoing information about competitors.
• E)reading important business publications such as The Wall Street Journal.

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Definitions:

Perpetual Inventory System

An inventory tracking system where updates are made continuously as transactions occur, providing real-time inventory levels.

Gross Method

An accounting method where purchases are recorded at their gross price, without deducting any discounts at the time of purchase.

Merchandise

Products or goods that are bought, sold, or traded in the course of business.

Trade Discount

A reduction from the list price granted by a seller to a buyer, often based on volume or trade practices.