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12345 [234]
3 years ago
8

Which of the following statements describes an inherent weakness in the use of the marginal-analysis model for establishing an a

dvertising budget? A. It is unsuitable as a basis for budgeting only in the case of direct-response advertising. B. It only considers environmental factors that affect the effectiveness of the promotional program. C. The budget is often set according to the FIFO method. D. The budget is determined by management solely on the basis of what is felt to be necessary. E. It assumes that sales are determined solely by advertising and promotion.
Business
1 answer:
aksik [14]3 years ago
5 0

Answer:

E. It assumes that sales are determined solely by advertising and promotion.

Explanation:

The marginal-analysis model assesses the incremental benefits of an activity compared to the additional costs incurred by that same activity.  It is a decision-making tool to help maximize potential profits or benefits.

Sales are not determined solely by advertising and promotion.  There are many other factors, including price, demand and supply, the elasticity of the good, the nature of the good, among other factors.  The sales of goods considered to be necessities are not affected much by advertising and promotion, unlike luxury goods, for example.

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Jeff brooks has recently moved into an apartment and has discovered that the previous tenant forgot to turn off the cable tv ser
SashulF [63]
<span>Economists would describe Jeff as a user of a public good. Jeff would be considered this because he is consuming something, but this consumption does not reduce the availability of the thing being consumed for others. Jeff is using the cable service, but this does not prevent anyone else from receiving and watching a cable service.</span>
4 0
3 years ago
On January 2, 2015, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products.
Butoxors [25]

Answer:

Straight line for 2015-2020= $37,500 each year

Double Declining 2015 = $83,500, other years are explained

Untis of production 2015= $45,000.2, other years are in the explanation.

Explanation:

The completion of the question is as follows

FOr Units of Production,  (Assume annual production in platings of 140,000; 180,000; 100,000; 110,000; 80,000; and 90,000.)

The question is to determine and compute the depreciation expense for 2015-2020 as follows

a) Straight line method

Formula = Cost of Equipment - The residual value / useful life of the equipment

= $250,500- $25,500 / 6 years

= $37,500

Year 2015 = $37,500

Year 2016 = $37,500

Year 2017 = $37,500

Year 2018 = $37,500

Year 2019 = $37,500

Year 2020 = $37,500

b) Double Declining Balance

Formula = The straight line method rate x 2 x The net book value of the machine

= 1/6 x 2 x $250,500

2015= $83,500

2016 = 1/6 x 2 x $250,500- $83,500 = $55,666.67

following the same process of getting the book value for each year, subtract the depreciation from the book vaule for the next year

2017= 31,111.11

2018= 24,740.74

2019= 16,493..83

2020= 7,487.65

c)The unit of productio method

First we get the unit cost = The Cost of the machine - its salvage value/ the number of cuttings

= $250500-$25500 / 700,000 cuttings = 0.32143

Year 2015 = 0.32143 x 140,000 = 45,000.2

Year 2016 = 0.32143 x 180,000= 57,857.4

Year 2017 = 0.32143 x 100000= 32,413

Year 2018 = 0.32143 x 110,000= 35,357.3

Year 2019 = 0.32143 x 80,000= 25,714.4

Year 2020 = 0.32143 x 90,000= 28,928.7

3 0
3 years ago
Key aspects of the process selection challenge include __________ and __________ Capital Intensity; Process Flexibility Informat
Ugo [173]

Answer:

A. capital intensity; process flexibility

Explanation:

Capital Intensity is the mix of equipment and human skills in the process; the greater the relative cost of equipment, the greater is the capital intensity.

Machining and assembly, programmable automation breaks the inverse relationship between resource flexibility and capital intensity.

8 0
2 years ago
Read 2 more answers
A firm's cash flow from financing activities includes: Select one: A. Cash paid for merchandise purchased B. Cash received from
iragen [17]

Answer:

A firm's cash flow from financing activities includes:

D. Cash paid to reacquire treasury stock.

Explanation:

The cash paid to reacquire treasury stock is a financing cash outflow.  It reduces the cash inflow from financing activities and forms part of the financing activities of the company under the Statement of Cash Flows.  In this financial statement, cash flows are classified into three main groups or activities: operating activities, investing activities, and financing activities.  This classification helps to define the source of the cash flow.

6 0
3 years ago
A set of collectible dolls was very popular during the holiday season, but, as is the case with many toy fads, has dropped off s
stich3 [128]

When there is a surplus of goods and the government does not intervene to stabilize prices, the prices will keep dropping in an effort to sell the good off.

According to the Law of Supply and demand:

  • prices drop when the supply of a good is more than the demand to encourage people to buy more of the goods.

This will be done in an effort to at least recuperate some of the costs of production instead of suffering a total loss when people don't buy the goods as is the case with these holiday toys.

We can therefore conclude that if the government does not intervene to either subsidize the price of these toys or control their price, the prices will keep falling to entice people to buy the goods.

<em>Find out more at brainly.com/question/12169648.</em>

3 0
2 years ago
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