Answer:
b. Firm A engaged in predatory pricing.
Explanation:
Since Firm A and B are the only two companies that sell mail-order DVD rental subscriptions.
Firm A decided to price its subscriptions below average variable cost thereby causing Firm B to also sell subscriptions below average variable cost, but they went bankrupt and exited the market. Firm A then raised prices by 40% and is currently earning large, positive economic profits.
Based on this information only, an argument can be made that Firm A engaged in predatory pricing.
Predatory pricing is a marketing or pricing strategy that involves lowering the cost of goods and services for a short-term, in order to lure competing firms to lower their price, thus causing them to go bankrupt and exiting from the market.
Answer:
$500 credit
Explanation:
Given that
Number of authorized shares = 1,000 shares
Stated value per share = $10
Issued shares = 50 shares
Initial offering = $20 per share
So based on above information, the journal entry is
Cash $500 (50 shares × $10)
To Common stock $500
(Being the common stock is issued is recorded)
While recording this transaction we debited the cash account as it increased the asset side and credited the common stock as the equity is increased so that the proper posting could be done
Answer:
Kindly refer to the attached table for breakdown of answers
Explanation:
FIFO is a costing method that assigns costs to production based on a First in First out basis. Meaning the oldest stocks are transferred to production before the earlier purchased stock
LIFO is a costing method which assigns costs to production on the newness of the stock item, that is Last in First out. The latests stock is always the first to be transferred to production
Weighted Average attempts to find a mix between FIFO & LIFO by employing a uniform valuation based on total value of stock divided by the Quantity of stock available at every point in time.
Cost of Goods sold is the relative cost associated with the sales volume based on the cost method adopted of the 3 listed above
And Closing inventory is the valuation of the stock left over at year end based on the Costing method earlier employed.
To be financially responsible, you can keep track of how much money you spend by keeping a checkbook updated. When doing bills, buying groceries and clothes, and spending money on other activities, you use the recipes to record your spendings in the checkbook. Another way to stay financially responsible is to use a debit card more than a credit. When using a credit card, you're borrowing the Bank's money rather than your own and you have to pay them back. Slowly, that can cause more problems when late fees are added, or worse, your interest rates begin to fluctuate. I hope I helped! :)
Answer:
The correct answer is: Creative strategy.
Explanation:
The creative strategy is the marketing plan a company sets to contribute to the achievement of its goal. Before this step, a study of the target market and customer of the company is necessary so the firm's publishers have an idea of who they are dealing with to introduce the good or service of the company in an engaging form.
