Jaclyn, the Local Toy Store Manager, Has Over-Ordered Skateboards for the Holiday

question 50

Multiple Choice

Jaclyn, the local toy store manager, has over-ordered skateboards for the holiday season. What is most likely her reasoning for this tactic?

• A) She wants to create jobs for skateboard manufacturers.
• B) She wants to build more storage space.
• C) She wants to tie up money in inventory.
• D) She is preparing for a large sale and does not want to run out.

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Definitions:

Transactions

Transactions refer to the exchange of goods, services, or funds between two or more parties, which are recorded and form the basis of accounting.

Costs Of Quality

The cost associated with controlling quality (prevention and appraisal) and failing to control quality (internal and external failure).

Prevention Costs

Expenditures made to avoid defects in products or inefficiencies in services, part of quality control measures.

Value-Added

The enhancement a company gives its product or service before offering the product to customers, increasing the product's value.