Scott Corporation Engages in Mass Customization and Direct Sales, the Latter

question 58

Multiple Choice

Scott Corporation engages in mass customization and direct sales, the latter by accepting customer orders over the Internet. As a result, Scott:

• A)would probably begin the manufacturing process upon receipt of a customer's order.
• B)would typically have fairly low inventory levels for the amount of sales revenue generated.
• C)would typically have fairly high inventory levels for the amount of sales revenue generated.
• D)would probably begin the manufacturing process upon receipt of a customer's order and typically have fairly low inventory levels for the amount of sales revenue generated.
• E)would probably begin the manufacturing process upon receipt of a customer's order and typically have fairly high inventory levels for the amount of sales revenue generated.

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Definitions:

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to adjust GDP from nominal to real terms.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in terms of constant prices.

NDP

Net Domestic Product, which is the total value of all goods and services produced within a country in a specific time period, minus depreciation.

GDP

Gross Domestic Product quantifies the overall market worth of every completed good and service produced internally across a country during a certain period.