A New Grocery Product Does Not Achieve a Predetermined Sales

question 27

Multiple Choice

a new grocery product does not achieve a predetermined sales target,some retailers require a penalty payment by the manufacturer to compensate them for sales that its valuable shelf space failed to make.What is this type of payment called?

• A) an opportunity cost charge
• B) lost sales fee
• C) shelf space allowance
• D) product displacement fee
• E) a failure fee

---

Definitions:

Guests

Individuals who visit or are invited to a place or event.

Work in Process Inventory

Goods that are in the production process but not yet completed.

Manufacturing Costs

Expenses directly tied to the production of goods, including labor, materials, and manufacturing overhead.

Cost of Goods Manufactured

The total production cost of goods completed and moved to finished goods inventory within a specific period, including materials, labor, and overhead.