Lucas, Inc purchased ten air conditioning units for $5,000 each, with an average expected service life of eight years and a residual value of $700 each. The depreciation rate for the assets, assuming the group depreciation method is used, will be
A) 10%
B) 10.75%
C) 12.5%
D) 14.5%
B
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Indicate whether the statement is true or false
A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:
A. $5,000. B. $50,000. C. $45,000. D. Zero. This is an operating activity. E. Zero. This is a financing activity.
_____ have the longest product life cycles
a. Product categories b. Product items c. Individual brands d. New products
Perceived value and signaling value are often an important part of a successful differentiation strategy because
A. differentiation is all about selling products to sophisticated buyers. B. there are no other ways to differentiate a product. C. buyers seldom will pay for value they don't perceive, no matter how real the value of the differentiating extras may be. D. buyer satisfaction cannot be achieved until a product's value is promoted through clever ads. E. of the standardization of buyer needs and preferences.