Answer:
Specialty goods are the products which require high efforts in purchasing because their cost is certainly high, consumers cant take a risk of buying them frequently, like sporting cars, high end cameras, luxury high end clothing etc. There are many industries in specialty goods in which you can see intense level of rivalry. For example, in sporting cars, you have multiple brands which have very severe kind of rivalry like Jaguar and BMW - Lexus and Lotus, they not compete in cars but they compete in their advertisements, evenest as well.
Whereas, when you consider, photographic camera industry, you will also find intense kind of rivalry between Canon and Sony, Leica and Olympus. Here they not only face direct competition from other camera brands, but they also have to face competition from the cell phone industry, which also provide high end cameras in their cell phones like iPhone, Samsung and Oppo etc.
Answer:
$52,500
Explanation:
Warranty cost are the cost associated with the repair or replacement of a product in case it does not perform as intended after purchase.
It is debited to the warranty expenses account and credited to the warranty liability account.
Total sales for the year - $3,000,000
Warranty estimate basis - 4%
Estimated warranty - 3,000,000 * 4% = $120,000
Warranty cost incurred = $67,500
Balance to be recorded for the year = 120,000 -67,500
$52,500
Answer:
The answer is (A) an increase or a decrease in price does not significantly affect the demand for a product.
Explanation:
Inelastic demand refers to a condition where demand does not change even when price changes. An example of this is the demand for gasoline – even when price increases, the amount consumed by customers do not drop as drastically. There are two types of inelastic demand: relatively inelastic demand and perfectly inelastic demand. When the first occurs, high price increase is followed by a relatively low drop in demand. When the second occurs instead, high price increase is followed by no drop in demand.
The information given is differentiated into either managerial accounting or financial accounting below:
- Main characteristic of data is that it must be reliable and objective = Financial accounting.
- Not governed by legal requirements = Managerial accounting
- Primary users are external (i.e creditors, investors) = Financial accounting
- Focused on the future = Managerial accounting
- Reporting is based mainly on the company as a whole= Financial accounting
- Reports are usually prepared quarterly and annually= Financial accounting
- Information is verified by external auditors = Financial accounting
- Focused on the past = Financial accounting
<h3>What is managerial accounting?</h3>
Managerial accounting is a method of accounting that creates statements, reports, and documents that help management in making better decisions.
Financial accounting is concerned with the summary, analysis and reporting of financial transactions related to a business.
Learn more about managerial accounting on:
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