Which of the following is most often true of mature markets?
A. Some competitors enjoy a significant operating advantage due to increasing experience effects.
B. The market supports premium pricing, which attracts additional competitors.
C. The magnitude of pricing differences and product differentiation is larger than in the growth stage.
D. Advantages that cannot be duplicated by other competitors are difficult to achieve.
Answer: D
You might also like to view...
Suddenly Salad had the following expenditures related to developing its trademark.General advertising costs$300,000Advertising specifically focused on trademark development120,000Legal fees to register trademark52,000Registration and design fees for the trademark38,000Legal fees for successful defense of the new trademark 33,000Total$543,000During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all the above as costs of the trademark. Management contends that all of the costs increase the value of the trademark; therefore, all the costs should be capitalized.1. Which of the above costs should the company capitalize to the Trademark account in the balance sheet?2. Which of the above costs should the company report as expense in
the income statement? What will be an ideal response?
Choice Creations, Inc. sells hand sewn shirts at $58.00 per shirt. It incurs monthly fixed costs of $8000. The contribution margin ratio is calculated to be 30%. What is the variable cost per shirt? (Round any intermediate calculations and your final answer to two decimal places.)
A) $40.60 per shirt B) $75.40 per shirt C) $58.00 per shirt D) $17.40 per shirt
Which of the following is a variable overhead cost?
a. The wages of an assembly–line employee paid on the basis of production output. b. Salary of the company chairman. c. Annual depreciation for the factory machinery. d. The wages of the factory janitor paid on the basis of production hours.
On September 30, Waldon Co. has $540,250 of accounts receivable. Waldon uses the allowance method of accounting for bad debts and has an existing credit balance in the allowance for doubtful accounts of $13,750. 1. Prepare journal entries to record the following selected October transactions. The company uses the perpetual inventory system. a. Sold $305,000 of merchandise (that cost $178,500) to customers on credit.b. Received $395,100 cash in payment of accounts receivable.c. Wrote off $15,700 of uncollectible accounts receivable.d. In adjusting the accounts on October 31, its fiscal year-end, the company estimated that 4.0% of accounts receivable will be uncollectible.2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its October 31 balance sheet.
What will be an ideal response?