Which of the following is considered an advantage of decreasing a product's quality?
a. It gives manufacturers greater ability to raise prices for the product.
b. It allows manufacturers to appeal to target markets unable to afford the original product.
c. It motivates customers to replace worn out products.
d. It enhances the ease of coordinating promotion from market to market.
ANSWER: b
Reducing a product's quality may let the manufacturer lower the price and appeal to target markets unable to afford the original product. Conversely, increasing quality can help the firm compete with rival firms.
You might also like to view...
Deflorio Corporation's inventory at the end of Year 2 was $156,000 and its inventory at the end of Year 1 was $140,000. The company's total assets at the end of Year 2 were $1,416,000 and its total assets at the end of Year 1 were $1,390,000. Sales amounted to $1,320,000 in Year 2. The company's total asset turnover for Year 2 is closest to:
A. 1.06 B. 0.94 C. 5.38 D. 0.19
Which of the following would be included in the entry to record the replenishment of a petty cash fund?
A) a credit to Petty Cash B) a debit to Accounts Receivable C) a credit to Cash D) a credit to Miscellaneous Expense
At the beginning of January of the current year, Little Mikey's Catering ledger reflected a normal balance of $53,000 for accounts receivable. During January, the company collected $15,000 from customers on account and provided additional services to customers on account totaling $12,600. Additionally, during January one customer paid Mikey $5100 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:
A. $2400. B. $55,700. C. $50,300. D. $50,600. E. $55,400.
Simulation modeling focuses more on causality and less on relationships
a. True b. False