In the Text,the "Red-Line Method" Refers to

question 147

Multiple Choice

In the text,the "red-line method" refers to

• A) The policy of drawing a red line around certain neighborhoods on a map and then refusing to sell on credit to people who live within those areas.
• B) Restrictions imposed by companies which insure credit risks.
• C) The use,in Dun & Bradstreet's reports,of a red line to show the maximum amount of credit which should be extended to a given customer;companies using this limit when they screen customers' orders are said to be using the "red-line method."
• D) A method of controlling inventories by drawing a red line on the inside of a bin.
• E) A method of controlling receivables by drawing a red line on invoices of companies that are expected to pay late.

Identify the components that make up a marketing program.

Understand the concept of utility and how it relates to customer satisfaction.

Grasp the importance of segmentation, targeting, and positioning in marketing.

Understand the role of environmental scanning in identifying marketing opportunities and threats.

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Definitions:

Direct Labor Workers

Direct Labor Workers are employees who are directly involved in the production of goods or services, whose wages are considered part of the direct costs of production.

Fixed Overhead

Costs that do not change with the level of production or sales, such as salaries, rent, and insurance, which are necessary for the operation but do not vary with the volume of output.

Direct Labor-Hours

A measure of the labor directly involved in the production of goods, often used in calculating standard costs and variances.

Property, Plant, and Equipment

Long-term tangible assets that are used in the normal operations of a business, such as land, buildings, and equipment.