A penetration pricing strategy tends to be most effective:
A. when demand is relatively inelastic
B. under unitary conditions
C. in price-sensitive markets
D. when the company can only perform small production runs
E. if unit costs are high
Answer: C
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The first budget to be prepared is usually the cash budget
Indicate whether the statement is true or false
Cayman Inc. bought 30% of Maya Company on January 1, 2018 for $450,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $1,500,000. Maya began supplying inventory to Cayman as follows: Cost to MayaTransfer PriceAmount Held by Cayman at Year-End2018$30,000$45,000$9,0002019$48,000$80,00020,000??Maya reported net income of $100,000 in 2018 and $120,000 in 2019 while paying $40,000 in dividends each year.?What is the investor's share of gross profit on intra-entity inventory sales that should be deferred on December 31, 2019?
A. $4,000. B. $2,400. C. $3,600. D. $1,500. E. $8,000.
In the context of business product categories, accessory equipment is designed for a shorter productive life than _____.
A. raw materials B. maintenance products C. repair and operating products D. installations
Conversion cannot occur when a person mistakenly believes that he or she is entitled to the goods.
Answer the following statement true (T) or false (F)