Which of the Following Statements Best Describes the "Iceberg Principle

question 88

Multiple Choice

Which of the following statements best describes the "iceberg principle"?

• A) Problems in one area may be offset by good performances in other areas-and thus the problems may not be visible on the surface.
• B) Ten percent of the items in inventory usually account for 80 percent of the sales.
• C) Within a company's sales force there are usually one or two sales reps who don't carry their weight.
• D) Many sales reps do not make their quotas because they ignore certain clients.
• E) Airfreight is less risky than shipping by boat.

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Definitions:

Original Investment

The initial amount of money put into a project, asset, or business venture, used as a basis for calculating returns and profits.

Commencement Of Production

The point at which a company begins manufacturing products or producing goods in a new or existing facility.

Total Costs Of Ownership

The comprehensive assessment of all costs associated with the purchase, operation, and maintenance of a good or service over its life cycle.

Suppliers

Companies or individuals that provide goods or services to another entity as part of a supply chain.