Spalding Produces Large Numbers of Golf Balls All at Once

question 39

Multiple Choice

Spalding produces large numbers of golf balls all at once. Spalding puts the golf balls in inventory and distributes them around the world. Which of the following type of production is Spalding using?

• A) production-to-order
• B) mass production
• C) custom production
• D) process production

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Definitions:

Adjustment Costs

Expenses incurred from making changes to a business, such as restructuring operations or relocating facilities.

Marketable Securities

Short-term financial instruments that can be quickly converted into cash at a reasonable price, like stocks and bonds.

Treasury Bill

A short-term government security issued at a discount from the face value and pays no interest.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically for financing accounts receivable and inventories.