Sara Lee Industries Spent Considerable Money and Time Developing a Crustless

question 114

True/False

Sara Lee Industries spent considerable money and time developing a crustless bread.Prior to the introduction,the company had not conducted market research among its customers,but it was confident that its science and technology department had produced a successful new product.Based on this example,Sara Lee is a good example of a production-oriented company.

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Definitions:

FOB Shipping Point

A shipping term indicating that the buyer is responsible for the shipping costs and owns the goods in transit once they leave the seller's premises.

Cost Flow Assumption

An accounting method used to value inventory and determine the cost of goods sold, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or completion, used in determining the value of inventory on hand.

LIFO

An inventory valuation method standing for Last-In, First-Out, where the most recently acquired items are assumed to be sold or used first.