BUSINESS COLLEGE

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called a. comparison discounting. b. special-event pricing. c. differential pricing. d. price or loss leader pricing. e. price lining.

Answers

Answer 1
Answer:

Answer:

D. Price or Loss leader pricing

Explanation:

A loss leader (also leader) is a pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. ... The loss leader is offered at a price below its minimum profit margin—not necessarily below cost.

Related Questions

Bob has saved $315 each month for the last 6 years to make a down payment on a house. The account earned an interest rate of .41 percent per month. How much money is in Bob's account
A plastics factory emits water pollutants into a nearby river. The marginal private cost of producing plastics is constant, the marginal external cost of the pollutants increases with the quantity of plastics, the demand for plastics is downward sloping. What happens to the socially optimal level of output and market price if the marginal external cost curve shifts upward? A) Optimal price and quantity decrease. B) Optimal price increases, optimal quantity remains unchanged. C) Optimal price increases, optimal quantity decreases. D) Optimal price and quantity decline.
Employees were striking at the local university last year. Very few students were crossing the picket line. In fact, the city's postal employees refused to deliver mail there claiming that they were honoring the strike for their fellow service union members. The postal employees were participating in a voluntary secondary boycott.a) trueb) false
Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales $64,900 $405,000 Cost of goods sold 44,000 300,000 Selling and administrative expenses 14,000 75,000 Interest expense 650 1,800 Other income (expense) (70 ) (380 ) Income tax expense 1,300 6,500 Net income $ 4,880 $ 21,320 Balance Sheet Data (End of Year) Current assets $16,000 $45,000 Noncurrent assets 25,000 120,000 Total assets $41,000 $165,000 Current liabilities $10,000 $54,000 Long-term debt 16,800 43,000 Total stockholders’ equity 14,200 68,000 Total liabilities and stockholders’ equity $41,000 $165,000 Beginning-of-Year Balances Total assets $43,000 $162,000 Total stockholders’ equity 12,500 64,000 Current liabilities 10,000 54,000 Total liabilities 30,500 98,000 Other Data Average net accounts receivable $7,400 $3,800 Average inventory 6,800 32,800 Net cash provided by operating activities 5,500 25,500 Capital expenditures 1,600 11,500 Dividends 450 3,500 (a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)(a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)Ratio TargetWal-Mart(1) Current ratio Enter a number:1 Enter a number:1(2) Accounts receivable turnover Enter a numbertimes Enter a numbertimes(3) Average collection period Enter a numberdays Enter a numberdays(4) Inventory turnover Enter a numbertimes Enter a numbertimes(5) Days in inventory Enter a numberdays Enter a numberdays(6) Profit margin Enter percentages% Enter percentages%(7) Asset turnover Enter a numbertimes Enter a numbertimes(8) Return on assets Enter percentages% Enter percentages%(9) Return on common stockholders’ equity Enter percentages% Enter percentages%(10) Debt to assets ratio Enter percentages% Enter percentages%(11) Times interest earned Enter a numbertimes Enter a numbertimes(12) Free cash flow
Anner Manufacturing is developing an activity-based costing system to improve overhead cost allocation. One of the first steps in developing the system is to classify the costs of performing production activities into activity cost pools. Classify the cost of each activity in the following list into unit-, batch-, product-, or facility-level cost pools:1. Labelling and packaging2. Plant Security3. Sales commission4. Supplies

9. Which of the following is true regarding the Comprehensive Annual Financial Report (CAFR)? A) The CAFR has three main sections: introductory, financial, and statistical. B) Required supplementary Information includes a Budgetary Comparison Schedule for the General Fund and all major special revenue funds that have a legally adopted annual budget

Answers

Answer:

The correct answer is Both of the above (A and B).

Explanation:

The CAFR is made up of a group of financial statements that must be reported to local authorities and are reviewed by AICPA certified auditors. This document contains all the budget information from previous years and those that are projected to be completed within the following year, using simple language in order to achieve an easy understanding of the principles applied in its construction.

Answer:

The answer is option A) The CAFR has three main sections: introductory, financial, and statistical.

Explanation:

The purpose of the Comprehensive Annual Financial Report (CAFR) is to provide accurate and meaningful information concerning the City's financial condition and performance.

The CAFR consists of three sections: Introductory, Financial and Statistical. The Introductory section orients and guides the reader through the report. The Financial section presents the entity's basic financial statements as well as notes to the statements and the independent auditors' report.

Kim received a one-third profits and capital interest in Bright Line, LLC, in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $30,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: sales-$150,000, cost of goods sold-$90,000, depreciation expense-$45,000, long-term capital gains -$15,000, qualified dividends-$6,000, and municipal bond interest-$3,000. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4? a. ($15,000).
b. $6,000.
c. $9,000.
d. $9,000.
e. $15,000.
f. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.

Answers

Answer:

f. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.

Explanation:

Note: Guaranteed payments have no effect on Kim's outside basis.

Bright Line LLC will be reporting on page 1 of Form 1065, an ordinary loss of $15,000 ($150000 - $90000 - $45000 - $30000)

1/3rd of $15,000 = $5,000. That is, $5,000 loss must be allocated to Kim on Schedule K-1. So, option f is the correct answer.

Accountants focus on creating financial statements, whereas finance professionals mostly use these statements to evaluate a firm and answer questions about its performance. Indicate which of the following financial statement would be the most helpful. a. How much cash is a firm generating through operating, investing, and financing activities?
b. How much debt and equity has the firm issued to finance its assets?

If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:

a. Overstate its earnings
b. Understate its earnings

Answers

Answer:

1. The financial statement that would be the most helpful for a finance professional to evaluate how a firm's performance is:

a. How much cash is a firm generating through operating, investing, and financing activities?

2. If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:

a. Overstate its earnings

Explanation:

This financial statement is provided by the Statement of Cash Flows. The statement provides the performance report about a company's liquidity and long-term solvency.  The information about how much debt and equity the firm has issued to finance its assets will be obtained from the statement of financial position (known as the balance sheet).  This statement does not show the performance of a firm, but its financial position as of a given date.

________ is the misappropriation of trade secrets related to or included in a product that is produced for or placed in interstate or foreign commerce to the economic benefit of anyone other than the owner.

Answers

Answer:

Economic espionage.

Explanation:

Economic espionage is an activity of unlawfully targeting and spying the sensitive information of corporate or government. The motive behind economic espionage is more than just earning profit, it is much larger in scope and scale. It include theft of critical economic intelligence, trade secret, intellectual property, etc. There are different ways of conducting economic espoinage:

1) Hiring insider of corporate or research institution and getting information on trade secrets etc.

2) By Cyber attack, theft, bribery, etc.

3) Building relationship with corporate or goverment, which seems innocent, however, motive is to gather economic intelligence.

There is Law been passed to protect against economic espionage.

abstraction enables us to apply a function to each value in a list and returns a new list of the results

Answers

the cover-up of complex procedures. Abstraction allows us to apply a function to each value in a list and produce a new list of the results by getting rid of unnecessary or repetitive code.

Abstraction is a method used in computer science to control the complexity of computer systems. It functions by setting a threshold for complexity beyond which a user cannot interact with the system, concealing the more intricate elements below the threshold.

When we write code parts (referred to as "procedures" or, in Java, "static methods") that are generalized by having variable parameters, we are using procedural abstraction. The concept is that we have code that, depending on how its parameters are configured when it is called, can handle a range of different circumstances.

Read more about abstraction enables at

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Workers and management agree on a contract that gives a 5% wage increase for each of the next three years. Everyone expected 3% inflation but inflation turned out to be 5% per year. Then at the end of three years... a. real wages will be higher than was expected.

b. real wages will have fallen

c. nominal and real wages will have changed by the same percentage.

d. real wages will be lower than was expected.

Answers

Answer:

The correct option is (d)

Explanation:

Real wages are nominal wages less inflation. Nominal wage is not adjusted for inflation. Everyone had expected an inflation of 3% per year while increase in wages per year is 5%. This implied that they will expect real wage of 2% (5% - 3%) per year.

However, it turned out that inflation was 5% per year. This means that real wages were actually 0% (5% - 5%). There was no increase in real wages at all. So, they received lower real wage (actually nil) as against expected real wage of 3% per year.
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