Distributions of cash or other resources by a business to its stockholder are called DIVIDENDS. Dividend involves the distribution of a portion of a company's profits to a class of its shareholders. The amount to be distributed is usually decided by the board of directors.
If the internet makes it easier for sellers to find buyers and makes it easier for buyers to learn about the products that are available for sale, we would expect that the benefits of trade will rise.
<h3>How internet has helped buyers?</h3>
- Everything is more convenient for the buyer when they have access to the internet.
- They have the freedom to read and think at their own pace.
- Customers are discovering a variety of methods to interact with brands and explore their goods and services because to the internet's nearly universal accessibility on a wide range of devices.
- Prospects are now better informed, so sales representatives who can move rapidly can turn leads over more quickly.
- Organizing sales teams has become simpler thanks to technology.
- CRM systems simplify the sales process and enable information sharing among teams, building a stronger team and ultimately increasing sales.
Learn more about CRM systems here:
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Answer:
A. Included in purchases.
Explanation:
The adjustment of the purchase discount lost under the gross method is included in the purchase amount. If the payment is made within the discount period, then the discount is applicable otherwise not, if the payment is not made within the discount period.
The journal entry is shown below:
Purchase A/c Dr XXXXX
To Account payable A/c XXXXX
(Being the goods are purchased on credit)
Answer:
While setting the price of a product, managers must consider all of the following: A) cost of the whole marketing mix B) buying capacity of the customers C) profit it should bring the company D) transportation cost E) personnel cost to the company
Explanation:
Key factors in calculating the sale price can be:
- Costs are a major factor in determining the selling price and a way of forming a price that is primarily related to costs called “ground” because it represents the minimum at which the price can be set. It includes cost plus other costs with no projected or minimal profit;
- Demand/buying capacity as a key factor in price calculation is tied to a method called the "ceiling" because capacity exceeds the price limit that customers are willing to accept to get a product or service.
- Competition as a pricing factor refers to alternatives that customers can choose from, and competition allows them to do so;
Cost-based pricing has its sub-methods such is Cost plus method
The basic principle is to add a rate of profit to the sum of direct and indirect costs. This way price consider a profit to it should bring to company.
Direct costs include material and labor costs, and indirect or general costs comprise a portion of fixed indirect costs such as depreciation, administration costs, sales costs and other general costs.
Formula: price = Direct costs + Indirect costs + Rate of profit
