The iceberg metaphor shows that many customers try to negotiate on price because:
A) price is often inflated to attempt to maximize profits for the company
B) price is the most easily quantifiable characteristic of any product
C) they were trained to negotiate on price and price alone
D) they feel that they are not fulfilling their duties as buyers if they do not attempt to get lower prices
E) they do not realize that other factors, such as service and terms, can be more important to satisfaction in the long-haul
E) they do not realize that other factors, such as service and terms, can be more important to satisfaction in the long-haul
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An example of a company that would use a process cost system is a(n)
a. consulting firm; b. print shop; c. cement company; d. home remodeling company; e. automobile sales dealership
In job design, ______ to be performed in organizations are grouped, usually into functional departments, and the tasks are further grouped into jobs for each employee, providing structures and processes.
A. tasks B. ratios C. trends D. workflows
As debt is substituted for equity in the capital structure and the debt ratio increases, the behavior of the overall cost of capital is partially explained by ________
A) the tax-deductibility of interest payments B) the increase in the number of common shares outstanding C) the reduction in risk as perceived by the common shareholders D) the decrease in the cost of equity
Which one of the following statements about common stock is true?
A) Common stock can provide attractive capital appreciation opportunities. B) Dividends generally provide the greatest rate of return on common stocks. C) Common stocks generally have a negative rate of return over a ten-year period. D) The DJIA is the best indicator of the overall performance of common stocks.