Mercury's Feet Began Its Business by Making Athletic Shoes

question 104

Multiple Choice

Mercury's Feet began its business by making athletic shoes. Its departments are structured based on products sold to professional athletes, products sold to novice athletes, and products sold to non-athletes. In this case, the company uses _____ departmentalization.

• A)geographic
• B)functional
• C)matrix
• D)customer
• E)vertical

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Definitions:

Sales Forecast

The process of estimating future sales, helping businesses make informed procurement, production, and marketing decisions.

Budgeted Cash

An estimation of cash inflows and outflows for a business over a specific period, used for financial planning purposes.

Collection Pattern

The typical manner or schedule with which a business collects payments from its customers.

Credit Sales

Sales transactions where the payment is deferred to a future date, typically involving a credit agreement.