What term refers to the practice in a multidivisional firm where orders from other parts of a company are rushed to be filled at the end of each month (allowing divisions filling the orders to recognize revenue but cause inventory problems)?
A)Order rushing
B)Commission sales
C)Pay-for-performance measures
D)Channel stuffing
E)Multitask principle

Question

Quizplus · Accepted Answer

Channel stuffing is the practice of filling orders from other parts of the company at the end of each month to recognize revenue and meet performance goals, but this can lead to inventory problems and ultimately harm the company.

What Term Refers to the Practice in a Multidivisional Firm