Alia, the Manager of a Pet Store, Notices That Most

question 49

Multiple Choice

Alia, the manager of a pet store, notices that most of the goods that come to her store are packed in high-quality cardboard boxes which are later discarded. She comes up with a plan and instructs her employees to use the cardboard boxes for making scratching boards for cats. She then sells the scratching boards at a price much lower than the other branded versions available in the market. Which of the following describes Alia's planning?

• A) Action oriented
• B) Priority oriented
• C) Advantage oriented
• D) Change oriented

---

Definitions:

Fixed Expenses

Fixed expenses are costs that do not change with the volume of output produced by a company, such as rent or insurance.

Operating Results

The financial outcomes of a company's core business operations, often represented by its income or loss from operations before interest and taxes.

Financial Advantage

A benefit or edge a person or business has that allows for better financial performance or opportunities than competitors.

Fixed Manufacturing Overhead

Costs associated with the production that do not vary with the level of output, including salaries of managers and rent of the factory.