One of the major differences between service companies and retail or manufacturing companies is that retailers and manufacturers

One of the major differences between service companies and retail or manufacturing companies is that retailers and manufacturers must account for:

A) Current assets.

B) Inventory.

C) Selling expenses.

D) Deferred revenue.

Answer: Inventory.

Companies that purchase inventories that are primarily in finished form for resale to customers are known as:

A) Delivering companies.

B) Service companies.

C) Merchandising companies.

D) Manufacturing companies.

Answer: Merchandising companies.

Firms that want to grow quickly in the global marketplace often employ the cost leadership strategy because

A) this produces favorable customs rates and import duties.

B) manufacturers around the world adopt lean manufacturing methods to bring their costs down.

C) this allows them to employ and benefit from enterprise management systems.

D) there are relatively few product variations across different countries.


Answer: B) manufacturers around the world adopt lean manufacturing methods to bring their costs down.