At Ray's Café, the Owner Always Treats the Customer with Respect

question 113

Multiple Choice

At Ray's Café, the owner always treats the customer with respect, and if any customer complains about the quality of the coffee or cakes, the owner himself addresses the issue to the customer's satisfaction. This has ensured that Ray's Café has become a very popular coffee shop. This represents Ray's Café's _____.

• A) power culture
• B) task culture
• C) core culture
• D) peripheral culture
• E) ceremonial culture

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Definitions:

Net Price Method

An accounting approach that calculates the cost of goods sold or purchased after deducting any discounts, rebates, or allowances from the gross price.

Gross Price Method

An inventory valuation method that records purchases at the gross invoice price without deducting any cash discounts.

FIFO

FIFO (First-In, First-Out) is an inventory cost valuation method assuming that the oldest items of inventory are sold first and newer inventories last, affecting the cost of goods sold and ending inventory valuation.

LIFO

Last In, First Out, an inventory valuation method that assumes goods purchased last are the first to be used or sold, affecting cost of goods sold and inventory value.