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3 years ago

Which of the following is a risk (or potential pitfall) of cost leadership?

Business

1 answer:

Lapatulllka [165]3 years ago

7 0

Answer:

a. Cost cutting may lead to the loss of desirable features

Explanation:

In the business market, sometimes there occurs a price war between the various companies regarding the same type product and each company reduces the price to as minimum as possible to take the cost leadership in the market. Some drawbacks that occur in such a strategy of companies are listed here -

There is a tight control on the expenses during the manufacturing of products which often results in loss of desirable features in the products
No new innovations are made as companies focus mainly of the current product
The feedback of customers seem to be of no importance in such conditions
This strategy promotes the lower quality products in the market

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Which of the terms or phrases listed below is more associated with financial statements prepared in accordance with U.S. GAAP th

nekit [7.7K]

Answer:

The answer is Accumulated other comprehensive income

Explanation:

The statement of accumulated other comprehensive income is specific to U.S GAAP.It is known as statement of comprehensive under International Financial Reporting Standards.

The statement records losses and gains that are unrealized.For instance a company whose investment is in shares,would have to record the investment at fair value, that is the market price at each year end, any gains or losses arising from such valuation,especially if the shares are held for long term, is posted to the accumulated other comprehensive income or statement of comprehensive income.

The reason is that the shares are still held within the business not yet disposed of,hence the gains or losses are not realized and should not be recognized in profit or loss.

4 0

4 years ago

Leon exchanges an office building which he held as investment property for a bowling alley. His office building has a basis of $

exis [7]

Answer:

According to Section 1031 of Internal Revenue Code, an exchange of like-kind property is referred to as like-kind exchange, if the exchange meets the following criteria:

The property should be exchanged only for the 'like-kind' (same class) property.
The 'like-kind' property that is in exchange should be either used in operations of business or held for investment purposes.
The exchange should be done under specific timing restrictions or requirements (for indirect exchanges through third parties).

Explanation:

A) Explanation: Since both the properties in exchange are real properties which are used in business, this is a like-kind exchange

Description Amount ($)

Fair market value of bowling alley 120,000

Add: Mortgage value L is relieved off 40,000

Amount reali7ed 160,000

Less: Adjusted basis (175:000)

Realized loss by L (15,000) 

C) Explanation: Since the loss realized is due to exchange, the loss is not recognized.

D) Explanation: Since the loss is not recognized, the character of gain or loss could not be

E) Explanation: The total of realized loss, $15,000 (From Requirement (b)) is deferred.

F) Determine the basis of property acquired in exchange, bowling alley.

Description Amount ($)

Fair market value of bowling alley 120,000

Add: Deferred loss 15,000

Basis of bowling alley 135,000

8 0

3 years ago

When the government changes either its spending or tax policy to pursue economic objectives, it has changed its:___.

Debora [2.8K]

Answer:

A. fiscal policy. and C. monetary policy.

Explanation:

What is Fiscal Policy?

The government's use of taxes, spending, and transfer payment to promote economic growth and stability.

What is Monetary Policy?

The action the Fed takes to control the money supply and the rate of inflation in the economy.

8 0

3 years ago

Write a claim that responds to the question: Why can transferring energy into or out of a substance change molecules' freedom of

nydimaria [60]

Answer:

hope this help u

Explanation:

Transferring energy into or out of a substance changes its temperature, which changes the molecules' freedom of movement. Claim 2: Transferring energy into or out of a substance changes the molecules' kinetic energy, which changes their freedom of movement.

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3 years ago

As the purchasing manager of a company that designs costumes, Natalie orders yards of fabric in preparation for Halloween. Natal

erastova [34]

Answer:

Inbound logistics

Explanation:

Logistics can be defined as the control of the movement of things between the point of inception and the point of consumption to meet the needs of different customers or corporations. The resources that are controlled in logistics include substantial goods such as materials, equipment, and supplies, and also other consumer goods.

Inbound logistics refers to the collecting, moving, facillitating, storage, and receiving of goods that comes into the business.

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3 years ago