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avanturin [10]
1 year ago
13

Managers should consider the price sensitivity of the target market when setting prices.

Business
1 answer:
UkoKoshka [18]1 year ago
4 0

True. Managers should consider the price sensitivity of the target market when setting prices.

<h3>What is meant by price sensitivity?</h3>

The degree to which demand fluctuates as a product's or service's price changes is known as price sensitivity. The price elasticity of demand, which implies that certain buyers won't pay more if a lower-priced choice is available, is a typical method for measuring price sensitivity.

By dividing the percentage change in quantity demanded by the percentage change in price, one can calculate price sensitivity. Sensitivity in finance refers to how much a market instrument will change in response to changes in underlying factors, most frequently in terms of how its price will move in response to other circumstances.

Read more on price sensitivity here: brainly.com/question/11715656

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Managers should consider the price sensitivity of the target market when setting prices.

t OR f

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Stallman Company took a physical inventory on December 31 and determined that goods costing $275,260 were on hand. Not included
Tpy6a [65]

Answer:

Inventory at year-end: 344,000

Explanation:

The inventory should add the purchased goods from Pelzer as the possesion is transfer at shipping point.

The sales units to Alvarez should also be included as teh transfer is not complete yet. The term on this transaction are at destination.

Total inventory in transit: 28,940 + 39,800 = 68,740‬

on hand:   $   275,260

in-transit:  $<u>     68, 740  </u>

Total:         $  344,000

5 0
3 years ago
In a perfectly competitive industry, influence over price is exerted by
tigry1 [53]

Answer:

(C) the forces of supply and demand

Explanation:

In a perfectly competitive industry, no single buyer nor seller will be able to influence prices thus marking the forces of demand and supply (the invisible hand) the determinant of pricing. Each buyer or seller will only account for a minute portion of total demand and supply thus making their influence of market price insignificant.

Options (A), (B) and (D) are incorrect as the largest firms, individual sellers and individual buyers do not influence pricing over price in a perfectly competitive market.

8 0
3 years ago
Earned $16,200 of cash revenue. Borrowed $12,000 cash from the bank. Adjusted the accounting records to recognize accrued intere
maksim [4K]

Answer:

A. The amount of interest expense to record for 2018 is $320, calculated as follows: $12,000 x 8% x 4/12 = $320.

B. No amount of cash was paid for interest in 2018; i.e. = $0.00

C. Effect of each transaction on balance sheet, income statement, and statement of cash flows:

1. Cash Revenue of $16,200

Balance Sheet - Cash and Retained Earnings are increased by $16,200.

Income Statement - Revenue is increased by $16,200.

Statement of Cash Flows: Cash inflows are increased by $16,200.  It is an operating activity (OA)

2. Bank Note Payable of $12,000 with accrued interest of $320 for 2018:

Balance Sheet - Cash and Notes Payable are increased with $12,000; Interest on Notes Payable is increased by $320 and Retained Earnings decreased by $320.

Income Statement: Net Income is decreased by $320.

Statement of Cash Flows: Cash inflows are increased by $12,000.  It is a financing activity (FA).

Explanation:

1. Cash revenue increases net income and Cash Account balance, and reflects positively on the cash flows for operating activities.

2. Notes Payable increases Cash Account balance (an asset) and Notes Payable (a liability).  It also increases the cash inflow for financing activities.

3. Accrued Interest on Notes Payable increases liability and decreases the net income, which reflects negatively on the Retained Earnings (Equity).  It does not affect the statement of cash flows as no disposal had been made yet.

4 0
2 years ago
As the average hourly wage increases from $18 per hour to $20 per hour, the quantity of frozen dinners demanded decreases from 3
horrorfan [7]

Answer:

The income elasticity of demand for frozen dinners is negative when there is an increase of hourly wages. -51%

Explanation:

When the income elasticity is negative it means that the good is inferior so when the income is increased, the demand of the good decrease beacuse its demand change to a better quality good. For instance in this case a fresh meal.

income elasticity % = % change in quantity / % change in income

(((3350-3550)/3550)/((20-18)/18))*100

7 0
3 years ago
Intellectual capital alludes to substantial resources and assets of a venture that are caught by traditional accounting reports.
Alex787 [66]

Answer: False

Explanation:

Intellectual capital simply refers to the intangible assets and the resources that helps in the contribution to the value of a particular company or enterprise and help such company to gain competitive advantage over its counterparts.

It should be noted that these assets and resources aren't caught by the traditional accounting reports.

The above statement means that the statement in the question is wrong. Intellectual capital are not caught by traditional accounting reports.

8 0
2 years ago
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