What techniques can a firm use to help consumers avoid sticker shock and a hostile reaction when prices rise?
What will be an ideal response?
One is to maintain a sense of fairness, such as giving customers advance notice so they can do forward buying or shop around. Sharp price increases also need to be explained in understandable terms. Making low-visibility price moves first is also a good technique: Eliminating discounts, increasing minimum order sizes, and curtailing production of low-margin products are examples, and contracts or bids for long-term projects should contain escalator clauses based on such factors as increases in recognized national price indexes.
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A company records a transaction in which six months' rent is paid in advance. Which of the following journal entries records the transaction?
A) Prepaid Rent - Debit; Cash - Credit B) Rent Receivable - Debit; Cash - Credit C) Rent Revenue - Debit; Cash - Credit D) Rent Expense- Debit; Cash - Credit.
Trader Joe's, a large grocery chain specializing in high quality foods, offers its own wine - Two Buck Chuck - under the Trader Joe's store brand name. This is an example of:
A. a manufacturer brand. B. a generic brands. C. a private label brand. D. a co-brand. E. a licensed brand.
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 8, it paid the full amount due. Assuming the company uses the gross method to record purchases, the journal entry to record the cash paid on July 8 is:
A. Debit Accounts Payable, $1,600; Credit Merchandise Inventory, $32; Credit Cash, $1,568. B. Debit Accounts Payable, $1,800; Credit Merchandise Inventory, $36; Credit Cash, $1,764. C. Debit Accounts Payable, $1,568; Debit Merchandise Inventory, $32; Credit Cash, $1,600. D. Debit Accounts Payable, $1,568; Credit Cash, $1,568. E. Debit Accounts Payable, $1,600; Credit Cash, $1,600.
John Gates made $25,000 last year and paid $2,500 in taxes on this income. Jane Smith made
$30,000 last year and paid $2,700 in taxes on this income. What type of tax is the government using? A) progressive taxes B) proposed taxes C) regressive taxes D) proportional taxes E) impossible to calculate with the information provided