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Revenue Process.
Expenditure Process.
Conversion Process.
Pricing.
Market Types.
100
The company must determine whether it wants “brick and mortar” sales, Internet sales, etc. They must decide on credit policies (cash sales versus credit sales) and they must decide whether sales calls will be made.
What is Determine marketing and distribution channels to generate sales.
100
The company must have a person or persons authorized to order goods.
What is Determine the need for goods/services.
100
The company must decide what products and what quantities should be manufactured and when.
What is Schedule production.
100
Cycle through which every product goes through from introduction to withdrawal or eventual demise.
What is Life Cycle Pricing.
100
The market determines the selling price, the individual company is a price taker.
What is Pure competition
200
The company must determine the credit and payment policies for specific customers and whether the goods/services are available. A sales discount is an inducement to customers to pay their bills in a timely manner. The discount allows the customer to pay less than the full amount of the sales invoice.
What is Receive and accept orders.
200
The company must determine where to buy the items it needs.
What is Select suppliers and order goods/services.
200
Direct materials are requisitioned from the secured-storage location by an authorized person(s).
What is Obtain direct materials.
200
The practice of offering a low price for a new product or service during its initial offering in order to attract customers away from competitors.
What is Penetration Pricing.
200
The market has a large influence on selling price, the individual company must distinguish itself through quality, service, or functionality.
What is Monopolistic competition.
300
The company must ship the goods or deliver the services. Items can be shipped FOB destination whereby the title passes at the customer’s location or FOB shipping point whereby the title passes at the seller’s location.
What is Deliver goods/services.
300
The company must inspect, store, and secure the items it has purchased. In addition, the company might require a purchase return when its sends back items to the supplier or a purchase allowance when it requests a reduction in the purchase price because the company is not satisfied with the product or service.
What is Receive goods.
300
Once the direct materials are available, labor and other resources (machines, electricity, etc.) are used to convert the direct materials into finished products.
What is Use labor and other manufacturing resources to make products.
300
A pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time.
What is Skimming Price.
300
Since so few companies compete in this environment the government monitors selling prices.
What is Oligopoly.
400
The company must bill the customer and then record the receipt from the customer.
What is Receive payment from customers.
400
The company must ensure that it pays only for goods ordered and received. In addition, it should pay for its purchases in time to receive any available purchase discounts.
What is Pay for goods.
400
Companies want to minimize the time that finished goods are stored and many companies have adopted JIT.
What is Store finished goods until sold.
400
A pricing method used by firms. It is defined as "a cost management tool for reducing the overall cost of a product over its entire life-cycle with the help of production, engineering, research and design".
What is Target Pricing.
400
Since only one company operates in this environment, selling prices must be approved by the appropriate regulatory agency.
What is Monopoly.
500
The company must support customers after the sale by providing customer training, etc. In addition, companies often experience sales returns when a customer returns merchandise and sales allowances when the customer is given a reduction in the selling price because they are not satisfied with the product or the service.
What is Provide customer support.
500
A person is authorized to order goods for the company.
What is Determine the need for goods/services.
500
The cost of all indirect manufacturing resources such as machines, electricity, etc.
What is Manufacturing overhead.
500
Setting an initial low price to drive out the competition and then raise prices once the market is controlled (unethical and possibly illegal)
What is Predatory Pricing.
500
A market system characterized by many different buyers and sellers.
What is Perfect Competition.