A High Percentage of the Customers of Action Sport Purchase

question 93

Multiple Choice

A high percentage of the customers of Action Sport purchase Action Sport shoes at least three-fourths of the time that they purchase shoes. In the context of barriers to entry, this product has a large degree of ________.

• A) distributor loyalty
• B) demographic force
• C) brand loyalty
• D) potential competition

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Definitions:

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the expected cost of these materials over a specific period.

Direct Labor Budget

A financial plan that estimates the cost of the labor needed to meet production goals, including wages and hours.

Manufacturing Overhead Budget

A financial plan that estimates the costs of indirect materials, labor, and other expenses needed to operate a manufacturing facility.

Production Units

A measure of output from a production process, with one unit representing an item or a defined amount of service produced.