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kodGreya [7K]
3 years ago
10

Why is it important to carefully evaluate promotional claims?

Business
2 answers:
juin [17]3 years ago
8 0
<span>b. companies always carefully test any claims that they make about a product </span>
Vsevolod [243]3 years ago
7 0

Answer:

The correct answer is c. it can be difficult to verify how promotional claims are tested.

Explanation:

Letter A is incorrect because saying that all products are good would mean that they always help the consumer in any way.

B is also incorrect because the claims are not always tested; the claims are sometimes used because they <em>sound</em> well or because they <em>sound</em> convincing.

Option D is also incorrect because it is not possible to know if an independent laboratory tested the claim.

The correct answer is <u>letter C</u> because the companies almost never share the methods they use to test their claims, making difficult to verify what they say.

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Royal Decking has five products in its inventory. Information about the December 31, 2021 inventory is below:
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Answer:

Royal Decking

A) Per unit value for each of Royal Decking's products, applying LCNRV:

Product   Cost   Sales Price   NRV                          LCNRV

A              $40      $60           $44 ($60 - 12 - 4)      $40

B                80       100           $72 ($100 - 20 - 8)    $72

C                40        80           $60 ($80 - 16 - 4)       $40

D               100      130           $84 ($130 - 26 - 10)   $84

E                 20       30           $22 ($30 - 6 - 2)       $20

B. Total Inventory on the balance sheet is:

$256,000

Explanation:

a) Data and Calculations:

Ending Inventory at December 31, 2021:

Product   Cost   Sales Price   NRV                          LCNRV  Inventory value

A              $40      $60           $44 ($60 - 12 - 4)      $40          $40,000

B                80       100           $72 ($100 - 20 - 8)    $72          $72,000  

C                40        80           $60 ($80 - 16 - 4)       $40          $40,000

D               100      130           $84 ($130 - 26 - 10)   $84           $84,000

E                 20       30           $22 ($30 - 6 - 2)       $20          $20,000

Total inventory value                                           $256       $256,000

= ($256 * 1,000)

Selling costs = 20% of selling price

Shipping costs = 10% of cost

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ABC Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department
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Answer:

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The assumption is that consumer loyalty, familiarity, brand popularity and reputation of the producer will ensure that the product is readily integrated into the market. Product extension can further help in expanding the reach of the product to new markets and consumer base, and increase overall profit margins as a result.

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