Answer:
The company promises to deliver upgrades for two years to a customer if they purchase software that costs $100. These upgrades need to be accounted for so they will be accounted for from the $100.
The $100 will therefore be split between the cost price of the software and the 2 year upgrades.
The part of the $100 that is the cost price will be recognized by the company as revenue immediately at the date of sale.
The upgrades however, will not. This is because you can only recognize revenue for services performed and these have not been performed yet. They will therefore be classified as Deferred revenue which is a liability account showing that the company owes people performance obligations.
As the years go by and the upgrades are given, the revenue will be recognized.
Answer: Comparative advertising.
Explanation:
Companies usually talk about how they are better than their competitors when trying to get people to patronize them and with comparative advertising, they actually show you that they are better.
They do this by showing a comparison between their products and prices with others so that one can see for themselves which brand is best. These ads are usually biased towards the company whose products the advertisers aim to sell more of.
The answer is: by cheap foreign labor
Currently, most of the corporations that operates in america manufacture their products in countries such as China, india, indonesia, phillipines, or Eastern European countries.
People who live in those countries typically have lower standard of living. Because of this, they can agree in receiving salary that are considerably lower compared to the minimum wage in united states.
A and D...................................................
Answer: a. Simplification of reality
Explanation: Simplification of reality is an accurate way to describe what a model is all about. It is a simplified representation used to explain the workings of a real world system or event. In business, as company's plan for making a profit, it identifies the products or services the business will put up for sale, it's target audience, including all expenses it anticipates. For new businesses, models help attract investments, to recruit talent, and in motivating management and staff. In all, businesses revisit and update their business plans so they can anticipate trends and changes and propose methods of meeting them in reality.