When Starbucks Introduced Its Instant Coffee Brand, Via, the Company

question 230

Multiple Choice

When Starbucks introduced its instant coffee brand, Via, the company sold it in packages of three single-cup units. Starbucks' primary objective for selling Via in three-unit packages rather than single-unit packages was most likely

• A)to encourage the consumer to try the product several times.
• B)to encourage a higher consumption of all Starbucks products.
• C)to sell more because of infrequent coffee purchases.
• D)to reduce costs in the distribution and handling of the Via products.
• E)to engage in environmentally responsible behavior.

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Definitions:

Factory Wages Payable

Amounts owed to factory workers for labor that has been performed but not yet paid.

Work in Process Inventory

Goods that are in various stages of the production process but are not yet completed.

Raw Materials Inventory

The total value of raw materials currently held by a company, which are to be used in manufacturing or production processes.

Labor Costs

The total sum of all wages, benefits, and taxes that a business must pay for its employees, often a significant component of production expenses.