Products can be classified as either business/industrial or consumer products. Explain what distinguishes business products from consumer products and why it is important to understand this distinction.
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A product's classification depends on the buyer's intentions. Business products are purchased for (1) use in the production of other goods or services, (2) use in an organization's operations, or (3) resale to other customers. Consumer products are purchased to satisfy an individual's personal wants. The same item can be classified as either a business or a consumer product depending on the intended use.
It is important to know about these product classifications because business and consumer products are marketed differently. These two target markets require different distribution, promotion, and pricing strategies.
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Answer the following statements true (T) or false (F)
1. The fact that invested cash earns interest over time is called the time value of money. 2. An annuity is a stream of equal cash payments made at equal time intervals. 3. All else being equal, the shorter the investment period, the higher the total amount of interest earned. 4. Compound interest means that interest is calculated only on the principal amount. 5. Compound interest assumes that all interest earned will remain invested and earn additional interest at the same interest rate.
Which organizational strategy is consistent with an adaptive orientation?
a) Multinational strategy b) Global strategy c) Transnational strategy d) Local strategy
A randomized block design with 4 treatments and 5 blocks produced the following sum of squares values: SST = 1951, SSTR = 349, SSE = 188 . The value of SSB must be:
a. 1414. b. 537. c. 1763. d. 1602.
Mcphail Inc. has a standard cost system. The standards for direct materials for one of its products specify 6.6 grams of a particular input per unit of output at a standard cost of $7.40 per gram. The company has reported the following actual results for the product for September:?Actual output5,700 units?Raw materials purchased41,900 grams?Actual price of raw materials$7.80 per gram ?Raw materials used in production37,630 gramsRequired:a. Compute the materials price variance for this input for September.b. Compute the materials quantity variance for this input for September.
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