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Excess inventory, a massive problem for many busi- nesses, has several causes, some of which are unavoidable. Overstocks may acc
Excess inventory, a massive problem for many busi- nesses, has several causes, some of which are unavoidable. Overstocks may acc
admin
2009-04-18
86
问题
Excess inventory, a massive problem for many busi-
nesses, has several causes, some of which are unavoidable.
Overstocks may accumulate through production overruns or
errors. Certain styles and colors prove unpopular. With
(5) some products—computers and software, toys, and
books—last year’s models are difficult to move even at
huge discounts. Occasionally the competition introduces a
better product. But in many cases the public’s buying tastes
simply change, leaving a manufacturer or distributor with
(10 ) thousands (or millions) of items that the fickle public no
longer wants.
One common way to dispose of this merchandise is to
sell it to a liquidator, who buys as cheaply as possible and
then resells the merchandise through catalogs, discount
(15) stores, and other outlets. However, liquidators may pay less
for the merchandise than it cost to make it. Another way to
dispose of excess inventory is to dump it. The corporation
takes a straight cost write-off on its taxes and hauls the
merchandise to a landfill. Although it is hard to believe,
(20) there is a sort of convoluted logic to this approach. It is
perfectly legal, requires little time or preparation on the
company’s part, and solves the problem quickly. The draw-
back is the remote possibility of getting caught by the news
media. Dumping perfectly useful products can turn into a
(25) public relations nightmare. Children living in poverty are
freezing and XYZ Company has just sent 500 new snow-
suits to the local dump. Parents of young children are
barely getting by and QPS Company dumps 1,000 cases of
disposable diapers because they have slight imperfections.
(30) The managers of these companies are not deliberately
wasteful; they are simply unaware of all their alternatives.
In 1976 the Internal Revenue Service provided a tangible
incentive for businesses to contribute their products to char-
ity. The new tax law allowed corporations to deduct the
(35)cost of the product donated plus half the difference
between cost and fair market selling price, with the proviso
that deductions cannot exceed twice cost. Thus, the federal
government sanctions—indeed, encourages—an above-cost
federal tax deduction for companies that donate inventory
to charity.
选项
A、production of too much merchandise
B、inaccurate forecasting of buyers’ preferences
C、unrealistic pricing policies
D、products’ rapid obsolescence
E、availability of a better product
答案
C
解析
The best answer is C. The question requires you to recognize which of the choices is NOT mentioned in the passage as a cause of excess inventory. Choice A, “production of too much merchandise,” is listed as a cause in lines 2-3, where the passage states that “overstocks may accumulate through production overruns.” In line 4, the assertion that “certain styles and colors prove unpopular” identifies “inaccurate forecasting of buyers’ preferences” (choice B)., as a cause. D, “products’ rapid obsolescence,” appears in lines 4-7, which indicate that ‘with some products…last year’s models are difficult to move.” E, “availability of a better product,” is listed as a cause in lines 7-8: “Occasionally the competition introduces a better product.” C, “unrealistic pricing policies,” is not mentioned in the passage.
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本试题收录于:
GMAT VERBAL题库GMAT分类
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GMAT VERBAL
GMAT
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