Marketers of a Particular Brand of Ice Cream Have Decided

question 75

Multiple Choice

Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called

• A) business analysis.
• B) immediate drop.
• C) screening.
• D) phase-out.
• E) run-out.

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Definitions:

Cost of Goods Sold

The immediate expenses incurred in the production of a company's sold goods, encompassing materials, labor, and overhead costs.

Operating Expenses

Expenses incurred during regular business operations, such as rent, utilities, and salaries, but excluding cost of goods sold.

Cash Payments

Outflow of cash as a result of transactions, such as paying expenses, purchasing assets, or repaying debt.

Free Cash Flow

The amount of cash generated by a company’s operations after accounting for capital expenditures, available for dividends, debt repayment, or reinvestment.