What Can a Company Do to Offset the Consequences of Slow

question 86

Multiple Choice

What can a company do to offset the consequences of slow sales in a product line?

• A) Limit the use of capital items.
• B) Diversify the product line.
• C) Add convenience goods.
• D) Increase the use of shopping goods available to consumers.
• E) Reclassify specialty products as convenience products.

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Definitions:

Perpetual System

An inventory system that continuously tracks inventory levels and cost of goods sold in real-time.

Merchandise Inventory

The total value of a company's goods held for sale to customers in the ordinary course of business.

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including materials and labor.

Perpetual System

Perpetual System is an inventory tracking system where inventory and cost of goods sold are updated continuously with each sale or purchase.