Answer:
b. $360,000.
Explanation:
Data provided in the question
Purchase value of the patent = $720,000
At the time of purchase, the patent life is 15 years
And, the useful life of the patent is 10 years
So, the amortization expense recorded value is
= $720,000 ÷ 10 years × 5 years
= $360,000
The five years is counted from the year 2006 to the year 2011
Answer:
AFS 2004 market price decline exceeded 2005 market price recovery
No No
The security cannot be classified as available-for-sale because the unrealized gains and losses are recognized in the Income Statement. Unrealized gains and losses on available-for-sale securities are recognized in owners' equity, not earnings.
The second part of the question is somewhat ambiguous. The 2004 price decline could exceed or be exceeded by the 2005 price recovery. The loss in the first year is not related in amount and does not constrain the realized gain in the second year.
The way to answer the question is to read the right column heading as implying that the earlier price decline must exceed the later price recovery. With that interpretation, the correct answer is no.
For example, assume a cost of $10 and a market value of $4 at the end of the first year. An unrealized loss of $6 is recognized in earnings. During the second year, the security is sold for $12. A realized gain of $8 is recognized-the increase in the market value from the end of the first year to the sale in the second year. Thus, the market decline in the first year did not exceed the recovery in year two. (It could have exceeded the recovery in year two but there is no requirement that it must.)
Explanation:
Explanation:
Let us understand the term what is elastic & "inelastic".
Elastic: It is the change in the behavior of the buyer & the seller when the product price changes.
Elastic goods will always have an substitute.
Example: Books, pencil, Notebook, bread, etc,
Inelastic means: This is opposite of elastic. There will be same number of buyers when the price goes up or down.
Whether the price gets raise or lower daily we need food. So food is inelastic.
Eg. food, prescription drugs, and tobacco products
Answer:
a
Explanation:
'Low-cost leadership' can be a competitive advantage as a company can sustain this advantage over a period of time and until it is producing economies of scale
Answer:
aggressively prices in one market to elicit a competitive response from a rival in another market.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
One of the importance associated with the pricing of products is that, it improves the image of a business firm.
Multipoint pricing occurs when a company aggressively prices in one market to elicit a competitive response from a rival in another market.
This ultimately implies that, a company's pricing strategy in one market is likely to impact the pricing strategy of its rival in another market.
