<span>Disposable income describes the amount of a family's money that is still available after all other necessities are handled. Advertisers are interested in this because they want to know what consumers that have large amounts of disposable income are interested in and are less concerned about the interests of those with very little disposable income.</span>
Answer:
For a company using target costing, market price minus profit equals target cost and not target price.
The correct answer is False
Explanation:
Target cost is the excess of market price over target profit margin. In target costing, the company does not fix the selling price because selling price is determined by the market.
Answer:
C.
Explanation:
Companies cannot appeal to all buyers in the marketplace, or at least not to all buyers in the same way.
This strategy focuses on targeting a specific set of customers, retaining them by meeting their needs, and using metrics to measure their satisfaction.
Steps:
-Market segmentation. Is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs.
-Market targeting. Consists of a set of buyers who share common needs or characteristics that the company decides to serve.
-Differentiation. A market coverage strategy in which a firm decides to to target several market segments and desing separate offers for each. Focus on how the company can create differentiated value for targeted segments.
-Positioning. The way the product is defined by consumers on important attributes. The place the product occupies in consumers’ mind relative to competing products.
Answer:
1. False
The higher the figure, the higher the risk. Kindly note that loans are usually insured against default. The higher the amount insured, the higher the premium payable as insurance on such amounts.
2. False
It does not make for good internal control to have one person regardless of their position to have the final say on loans of great magnitude such as $5 Million. This can quickly degenerate into a situation where the officer involved is tempted to abuse that power. It makes for good corporate governance and risk management to ensure that the board is responsible for loans of such magnitude.
3. True
If a bank lost $100 in a thousand places, from loan default, that translates to a loss of $100,000. This relatively is large however it is small and will have less impact that a loss of a million dollars in 3 places. That's $ 3,000,000.
As already indicated, it makes for good loan disbursement governance, to ensure that there is at least two persons involved in the risk acceptance criteria (RAC) evaluation and loan disbursement process.
4. False
Separation of duties is the foundation of good internal control. It allows for greater objectivity. It is also key to carefully select signatories to loan disbursements. They have to be people of impeccable character and the company must exercise proper risk management to ensure that every protocol such as opportunity that may create the impulse or inclination to breach policy is removed completely.
Cheers!
