Walmart Has Developed a Sophisticated Inventory Management and Cost Control

question 49

Multiple Choice

Walmart has developed a sophisticated inventory management and cost control system that allows rapid price changes for each product in the store.The firm also uses technologies such as ________ to improve the quality of information available about products.

• A)radio frequency identification
• B)encapsulation techniques
• C)bar code scanners
• D)nanotechnology
• E)cookies

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Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Collection Period

The time frame it takes for a business to convert its credit sales into cash, reflecting how efficient a company is at collecting accounts receivable.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time. It is used to evaluate the profitability of an investment or project.