What is extensive decision making? Discuss the purchase of a product that you would use extensive decision making when purchased for the first time and would require limited decision making in subsequent purchases.
What will be an ideal response?
Extensive decision making is the most complex type of consumer decision making used when buying an unfamiliar, expensive product or an infrequently bought item and requires use of several criteria for evaluating options and much time for seeking information. Buying a car, an appliance, a stereo system, or other expensive, durable item would require extensive decision making for the first purchase. However, as the purchase is repeated, the buyer may feel experienced in decision making and may step back to limited decision making. For example, a person who has bought several cars may resort to the heuristic, "I have always bought Fords and have been satisfied, so my next car will be a Ford."
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Which of the following statements is true?
A. Product costing is limited to manufacturing firms. B. All product cost numbers can be easily derived due to their objective nature. C. There is only one way to assign indirect costs. D. Relative profitability depends upon the way we assign costs and define outputs as successful or unsuccessful. E. Product costing is not used in financial accounting.
Interest expense recognized each period on zero-coupon bonds sold at a discount is equal to the
A) credit to Cash. B) difference between the cash payment minus the discount amortization. C) credit to Discount on Bonds Payable. D) sum of the cash payment plus the discount amortization.
Network protocols fulfill all of the following objectives except
a. facilitate physical connection between network devices b. provide a basis for error checking and measuring network performance c. promote compatibility among network devices d. result in inflexible standards
Answer the following statement(s) true (T) or false (F)
1. If the order quantity in each order is large, then fewer orders will be placed, which will result in lower annual ordering costs. 2. If the order quantity per order is 2,000 units, annual demand is 10,000, and cost per order is $50, then the total annual ordering cost is $2,500. 3. If the order quantity per order is 2,000 units, annual demand is 10,000, and cost per order is $50, then the total annual ordering cost is $250. 4. If the order quantity per order is 2,000 units, annual demand is 10,000, and cost per order is $50, then the average inventory is 1,000 units.