A Company That Manufactures Door Hinges Used by GM in Its

question 102

Multiple Choice

A company that manufactures door hinges used by GM in its car doors gets increased orders from GM because more consumers are demanding GM vehicles.This illustrates ________ for this __________.

• A)derived demand; prestige good
• B)primary demand; unsought good
• C)secondary demand; shopping good
• D)derived demand; production good

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Definitions:

Master Budget

A comprehensive financial planning document that consolidates all individual budgets related to sales, cost of goods sold, operations, and capital expenditures.

Credit Sales

Sales in which the payment is received after the service is delivered or the goods are sold, typically through an agreement or credit.

Accounts Receivable

Funds that customers owe to a business for products or services that have been provided but remain unpaid.

Credit Sales

Transactions where the customer purchases goods or services on the agreement to pay at a later date, often generating accounts receivable.