Marketing MCQ
Marketing Chapter 18
A few years ago, prices for supplies were on the rise. In order to safeguard from future price increases, ABC Toys made a deal with its supplier that allowed ABC to purchase raw materials at a set price for 2 years. This allows ABC to better predict a budget for raw materials month to month. ABC's deal with its supplier illustrated which of the following?
A few years ago, prices for supplies were on the rise. In order to safeguard from future price increases, ABC Toys made a deal with its supplier that allowed ABC to purchase raw materials at a set price for 2 years. This allows ABC to better predict a budget for raw materials month to month. ABC's deal with its supplier illustrated which of the following?
A few years ago, prices for supplies were on the rise. In order to safeguard from future price increases, ABC Toys made a deal with its supplier that allowed ABC to purchase raw materials at a set price for 2 years. This allows ABC to better predict a budget for raw materials month to month. ABC's deal with its supplier illustrated which of the following?
A. Capital budgeting
B. Zero-based budgeting
C. Equity financing
D. Start-up budgeting
E. Hedging
Answer: E. Hedging
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