Which of the following statements about economic policy are FALSE?

Item 2 item 2 companies such as maybelline often use _____ advertising to convince consumers to take action such as switching br

PtichkaEL [24]

There are two possible types of advertising that apply. Companies such as maybelline often use push/persuasive advertising to convince consumers to take action such as switching brands, trying a new product, or even continuing to buy the advertised product.

1) Persuasive advertising is when company promotes its products in every possible way such as representing the promotional item by flyers, magazines, television, radio and billboards. Such type of advertising is considered to be traditional and its viral influence usually leads company to success in sales.

2) What about push advertising, this type is meant to make company be competitive in sphere of marketing. It is usually characterised by persuading promotion that is aimed to make a consumer buy a particular product, ensuring that this one is the best among its analogues.

3 0

3 years ago

Prepare income statements based on variable costing for each of the 2 years. 2.Prepare income statements based on absorption cos

enot [183]

Answer:

The question is incomplete, it is missing the accounts and numbers, so I looked for a similar question:

The Rehe Comany sells its razors at $3 per unit. The company uses a first-in, first-out actual costing system. A fixed manufacturing cost rate is computed at the end of each year by dividing the actual fixed manufacturing costs by the actual production units. The following data are related to its first two years of operation:

2011 2012

Sales 1000 units 1200 units

Costs:

Variable manufacturing 700 500

Fixed manufacturing 700 700

Variable operating (marketing) 1000 1200

Fixed operating (marketing) 400 400

2011 2012

Sales 1000 units 1200 units

Production 1400 1000

Costs:

Variable manufacturing $700 $500

per unit $0.50

Fixed manufacturing $700 $700

Variable operating (marketing) $1000 $1200

Fixed operating (marketing) $400 $400

cogs under absorption costing 2011 = ($1,400 / 1,400) x 1,000 = $1,000

cogs under absorption costing 2012 = $400 + ($1,200 / 1,000) x 800 = $1,360

1. INCOME STATEMENTS

VARIABLE COSTING

2011 2012

Total sales revenue: $3,000 $3,600

Opening inventory: ($0) ($200)

Variable manufacturing: ($700) ($500)

Ending inventory: $200 $100

Gross contribution margin: $2,500 $3,000

Variable operating: ($1,000) ($1,200)

Contribution margin: $1,500 $1,800

Fixed manufacturing: ($700) ($700)

Fixed operating: ($400) ($400)

Net operating income: $400 $700

2. INCOME STATEMENTS

ABSORPTION COSTING

2011 2012

Total sales revenue: $3,000 $3,600

COGS: ($1,000) ($1,360)

Gross margin: $2,000 $2,240

Operating costs: ($1,400) ($1,600)

Net operating income: $600 $640

3. Under variable costing, closing inventory = 400 units x $0.50 (variable production costs per unit) = $200.

Under absorption costing, closing inventory = 400 units x $1 (production cost per unit) = $400

Since closing inventory is $200 higher under absorption costing, then net operating income during 2011 increases by $200.

4. a) Variable costing is more likely to result in inventory buildups. Since variable costing determines the value of closing inventory only using variable manufacturing costs, their value is much lower. E.g. in this case the value of closing inventory 2011 under variable costing is $200, while under absorption costing it is $400. This means that less costs are transferred from one year to another.

b) Cost of goods sold must include all production costs (both variable and fixed). This way COGS costs cannot be over estimated during one year and under estimated the next.

3 0

3 years ago

The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1

Olegator [25]

Answer:

$56.89

Explanation:

The computation of the current price of this preferred stock is shown below:

= Annual dividend ÷ required rate of return

where,

Annual dividend equal to

= Quarterly dividend × number of quarters in a year

= $1.65 × 4 quarters

= $6.6

And, the required rate of return is 11.6%

Now put these values to the above formula

So, the price would equal to

= $6.6 ÷ 11.6%

= $56.89

5 0

4 years ago

A client, age 67, owns his own home free and clear. The customer has an annual income of $25,000, mainly from social security an

FromTheMoon [43]

Answer:

The best recommendation to be made to this client is to do nothing.

Explanation:

Investment in stock is a highly risky investment because price of stock often fluctuates which can make an investor to lose a lot of money.

From the question, the client is already old at age 67 with a low income and he does not have any other liquid assets apart from the annual income of $25,000, mainly from social security and interest on funds held in a bank savings account.

Since losing so much money through investment in stock is not affordable to him, the best recommendation to be made to this client is to that he should do nothing.

3 0

3 years ago

A new technological breakthrough increases production for an industry and shifts the supply curve to the right. If the firm ____

Katyanochek1 [597]

Answer:

The correct answer is letter "C": produces products that are considered elastic.

Explanation:

Elasticity refers to the sensitivity of a good or service to reflect change in its supply or demand after a change in price. A product's supply is said to be elastic if the changes in the quantity supplied increases and it immediately determines a price in the price.

Thus, if for technological reasons the output of a company increases, considering that the product is elastic, the prices will increases which will provide the organization more revenue. That firm will be more than glad about the technological advance.

6 0

3 years ago