The Marketing Manager of Refresh Inc

question 20

Multiple Choice

The marketing manager of Refresh Inc., a leading producer of soft drinks, is considering a differentiated marketing strategy. An important consideration is weighing increased sales against _ _ before selecting this strategy.

• A) increased costs
• B) decreased prices
• C) increased demand
• D) decreased production
• E) increased profits

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation that doubles the normal depreciation rate, reducing the book value of assets more quickly in the early years.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, which reflects the loss in value due to usage, wear and tear, or obsolescence.

Residual Value

The forecasted price an asset is likely to command at the end of its usefulness.

Component Depreciation

A method of depreciation where different components of a fixed asset are depreciated separately over their respective useful lives.