The Decision to Keep or Drop Products or Services Involves

question 104

Multiple Choice

The decision to keep or drop products or services involves strategic consideration of all the following except:

• A) Potential impact of the decision on the demand for the remaining products or services.
• B) Potential impact of the decision on employee morale.
• C) Potential impact of the decision on pricing of other products offered by the firm.
• D) Growth potential of the firm.
• E) The desired inventory levels of the product.

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Definitions:

Inventory Transaction

This term refers to any event that causes a change in the quantity or value of inventory held by a business.

Purchased Units

The quantity of goods acquired by a company for resale or use in production during a specific accounting period.

Periodic FIFO

A method in inventory valuation where goods are assumed to be sold in the order they were acquired, calculated periodically.

Inventory Activity

This involves all movements or transactions related to inventory, including purchases, sales, returns, and write-offs, which affect the stock levels.