When Material Is Ordered from a Vendor, Which of the Following

question 40

Multiple Choice

When material is ordered from a vendor, which of the following is not a reason for delays in the order arriving on time?

• A) Normal variation in shipping time
• B) A shortage of material at the vendor's plant causing backlogs
• C) An unexpected strike at the vendor's plant
• D) A lost order
• E) Redundant ordering systems

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Definitions:

Skimming Pricing Policy

A pricing strategy in which a company sets relatively high prices at the launch of a new product to maximize profit margins from customers willing to pay the premium price.

Price-sensitive

Refers to how demand for a product is influenced by changes in its price; price-sensitive consumers are likely to change their purchasing behaviors significantly in response to price changes.

High Initial Price

A pricing strategy where a product is introduced to the market at a high price point to maximize revenue from less price-sensitive customers before possibly lowering the price.

Skimming Pricing

A pricing strategy involving setting high prices initially to target consumers who are willing to pay more for new or unique products.