Tide Laundry Detergent Maintains the Same Market Share It Had

question 82

Essay

Tide laundry detergent maintains the same market share it had 50 years ago because of the sales contributions of its various line extensions.Tide could be said to employ a preemptive cannibalization strategy in generating line extensions.What does this mean?

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Definitions:

Operating Activities

Cash flow actions related to the day-to-day operations of a business, such as receiving cash from customers and paying suppliers.

Direct Method

An allocation method that directly assigns service department costs to producing departments without any intermediate allocations.

Direct Method

A way of preparing a cash flow statement where actual cash flows from operating activities are reported instead of adjusting net income for non-cash items.

Prepaid Expenses

Future expenses that have been paid in advance and are accounted for as assets on a balance sheet until they are incurred.