What Is an Advantage to the Firm When Using Trade

question 217

Short Answer

What is an advantage to the firm when using trade shows as a type of sales promotion?
They are effective since the buyer comes to the seller.
Coupons may be used to encourage customers to try new products.
The displays serve to attract customer attention as they walk through a store.
Free samples may be used to allow customers to try a product for a few days without any risk.
Contests may increase sales by stimulating buyers' interest in a product.

---

Definitions:

Costs Recorded

Expenses documented in the financial records of a business, reflecting the economic use of resources.

Carrying Amount

Refers to the value of an asset or liability as reported on the balance sheet, considering factors like depreciation or amortization.

Depreciable Asset

A long-term asset subject to depreciation, reflecting the decrease in value over time due to wear and tear, age, or obsolescence.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.