Bic IncHas a New Ad to Attract New Customers

question 2

Multiple Choice

Bic Inc.has a new ad to attract new customers.This ad is categorized as a(n)

• A) retention cost.
• B) discount rate.
• C) average contribution.
• D) acquisition cost.

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Definitions:

Weighted Average Cost

A method of calculating the cost of goods available for sale that considers the cost of goods at varying times and at different purchase costs.

Computation

The process of performing mathematical calculations or processing information to achieve a result.

Debt-equity Ratio

A metric that evaluates the financial leverage of a company, determined by dividing the total amount of its liabilities by its shareholder equity.

Weighted Average Cost

A financial metric that calculates the average price of various sources of capital (debt, equity, etc.), weighted by their respective use in the financing mix of a company.