The Manager of Inkman, a Convenience Store, Keeps Track of the Average

question 37

Multiple Choice

The manager of Inkman, a convenience store, keeps track of the average sale amount for each customer as a way of deciding on the product mix to be carried in the store. This is an example of ________ control.

• A) feedforward
• B) output
• C) input
• D) MBO

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Definitions:

Operating Leverage

The degree to which a firm relies on fixed costs in its operations, affecting its potential income variability.

Financial Leverage

The use of borrowed money to increase the potential return of an investment.

Business Cycle

The natural rise and fall of economic growth that occurs over time, including periods of expansion, peak, contraction, and trough.

Economic Conditions

The state of a country or region's economy, including factors like unemployment, inflation, and GDP growth.