Indicate whether each of the following statements is true or false.In making a decision to eliminate a segment of a business, managers should compare differential revenues for the segment to its avoidable costs.____Eliminating one segment of a business generally has no effect on the other segments.____Eliminating one segment of a business has no effect on the customers of the other segments.____The opportunity cost, alternative use for facilities, should be considered in deciding whether to retain a segment of a business.____A decision to eliminate a segment of a business is likely to have long-term consequences because reestablishing the segment might be difficult.____
What will be an ideal response?
| In making a decision to eliminate a segment of a business, managers should compare differential revenues for the segment to its avoidable costs. | T |
| Eliminating one segment of a business generally has no effect on the other segments. | F |
| Eliminating one segment of a business has no effect on the customers of the other segments. | F |
| The opportunity cost, alternative use for facilities, should be considered in deciding whether to retain a segment of a business. | T |
| A decision to eliminate a segment of a business is likely to have long-term consequences because reestablishing the segment might be difficult. | T |
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A. inflation rate B. interest rate C. nominal exchange rate D. real exchange rate
The budgeted cost of products to be sold in a future period would be found in the
a. production budget. b. sales budget. c. purchases budget. d. pro forma income statement.
With regard to pipeline inventories, there is a trade-off between ______.
A. in-transit inventory and value of the inventory B. value of the inventory and transportation costs C. transportation costs and in-transit inventory D. in-transit inventory and product cost
Use this information for questions that refer to the Super Gaming Company and Accessories (SGCA) case.Kayla Jurgenson, marketing manager for Super Gaming Computers and Accessories (SGCA), is reviewing her company's plans for the coming year.SGCA sells its products through retail computer dealers and some specialty gaming stores. Currently, SGCA is carried in 25 percent of all retail computer stores nationwide, but in California it is carried in only 10 percent of stores. Kayla has set an objective of being in 25 percent of all retail computer stores in California within one year.SGCA plans to introduce a new SuperDuperGamer model with special features that fits its target market of teen and young adult gamers. The SuperDuperGamer uses a new technology and is expected to be a breakthrough
product, but it will be important to build awareness for it to succeed. The advertising objective is for 40 percent of SGCA's target market to be aware of the new SuperDuperGamer model within 3 months. SGCA also wants to help its retailers reduce their current stock of SuperGamer computers before the new model comes out in a month. The SuperGamer has been on the market for two years and has been a top seller in the category. SGCA's advertising objective for the SuperGamer computer is to reduce current dealer stock by 80 percent within the next month.SGCA is also introducing a SuperEnhancer sound card, which is designed to significantly enhance the game-playing experience with older computers. Research with gamers show that it is very well received, so the advertising objective for the SuperEnhancer sound card is to gain 40 percent market share among all gaming-specific sound cards in the next year. To help achieve that objective, Jurgenson is planning to use an ad that shows the sound card and a player being knocked off his chair by the sound. The headline on the ad reads, "9 Out of 10 Gamers Say that the SuperEnhancer Sound Beats All Others!" All of SGCA's products are made from recycled material, and the company wants to promote its environmental practices. What kind of advertising would be most appropriate to do this? A. institutional advertising B. comparative advertising C. competitive advertising D. pioneering advertising E. direct competitive advertising