The Production and Operations Manager at a Large Shoe Factory

question 146

Multiple Choice

The production and operations manager at a large shoe factory in Lawrence,Massachusetts,notices that the total number of hours worked by production employees has increased 12 percent,while the number of pairs of shoes ready for shipping has dropped 6 percent this year over last year.This means

• A) the inflation rate is unchanged.
• B) the demand for shoes is decreasing.
• C) the manager's calculations cannot be correct.
• D) productivity has decreased.
• E) the gross national product has increased by 6 percent.

Define and appreciate the importance of mediator flexibility.

Understanding the importance of temperate phrasing and careful language choice in negotiations.

Recognizing strategies for framing and reframing the negotiation process.

Managing and mitigating the impact of negative emotions in negotiations.

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Definitions:

Bad Debt Expense

An expense account reflecting the cost of accounts receivable that a company does not expect to collect and has written off.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and record bad debts expense.

Percent of Sales Method

A financial forecasting technique that estimates certain balance sheet and income statement items as a fixed percentage of projected sales.

Uncollectible Expenses

Costs that a business incurs from credits extended to customers that are not expected to be paid back, often recognized as bad debt expense.