A Producer Might Use a "Pulling Policy" Rather Than a "Pushing

question 296

Multiple Choice

A producer might use a "pulling policy" rather than a "pushing policy" if:

• A) intermediaries are reluctant to handle a new product.
• B) it is offering a very "high-tech" product to a small product-market.
• C) its sales force has been very successful getting wholesalers and retailers to handle its product.
• D) it has a very limited promotion budget.
• E) All of these alternatives are correct.

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Definitions:

Manufacturing Overhead

All indirect factory-related costs incurred while producing a product, excluding direct materials and direct labor.

Work in Process

Inventory that includes the materials, labor, and overhead costs for products that are in the production process but not yet completed.

Journal Entries

Records in accounting that document financial transactions in the books of accounts.

Raw Materials

Raw materials are the basic substances or components used in the manufacturing process to produce finished goods.