Answer: Market Cannibalization
Explanation: The pocket watch line is having the market cannibalization which is also known as the corporate cannibalism effect on the company's wrist watches.
Market Cannibalization refers to a reduction in sales of a particular old product which is usually as a result of a company's introduction of a new product.
The introduction of the new product displaces the older products mostly because both products have thesame customer base and also perform similar functions.
It is essential to note that despite the increase in sales of the new product, the company's market share experiences no increase but a decrease which is due to the sales loss of the older product.
Financial analyst , regional sales manager
Answer and Explanation:
The computation of the number of equivalent units for direct material and conversion cost is shown below:
For materials
= units started and completed × completion percentage + ending work in process inventory × completion percentage
= (24,400 - 1,160) × 100% + 1,280 units × 100%
= 23,240 units + 1,280 units
= 24,520 units
For conversion
= Opening work in process inventory × remaining percentage + units started and completed × completion percentage + ending work in process inventory × completion percentage
= 1,160 units × 70% + (24,400 - 1,160) × 100% + 1,280 units × 60%
= 812 units + 23,240 units + 768 units
= 24,820 units
Answer:
A. $549000
Explanation:
Given information
Number of outstanding stock of Sherry, Inc = 60%
The cost of the land = $207,000
Fair value at the acquisition date = $549,000
By considering the above information, the value reflected in a consolidated balance sheet is $549,000.
The historical principle says that the fixed assets should be recorded at the purchase price or acquisition cost only and the same is to be considered
