One Key Feature of the Value of a Strong Brand

question 108

Multiple Choice

One key feature of the value of a strong brand is that

• A)it can protect the firm from competition.
• B)it no longer needs to be supported by advertising and promotion.
• C)if it becomes a generic name, the brand is worth even more.
• D)it cannot be successfully imitated by a retailer's own brand.
• E)competitors will typically abandon a sector altogether rather than compete.

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Definitions:

FIFO Method

"First In, First Out," an inventory valuation method assuming that the first items purchased are the first ones sold, affecting the cost of goods sold and inventory value.

Cost Flow Method

An accounting technique used to value inventory and determine the cost of goods sold by assuming a flow of costs.

FOB Shipping Point

A shipping term indicating that the buyer takes responsibility for goods and their transportation costs as soon as the goods leave the seller's premises.

Goods In Transit

Merchandise or stock that has been shipped by the seller but has not yet been received by the purchaser.