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Scenario 1-5
Exodus Moving is a small business that was created to serve local furniture stores' delivery needs in the Boulder Colorado area. They have specialized equipment that allows them to lift and transfer large and bulky pieces of furniture with less risk of damage than most traditional movers. Many of these furniture stores do not sell enough volume to keep their own trucks and drivers busy all of the time, so Exodus fills a real market need. As a result, most such stores are very interested in outsourcing delivery service needs. Exodus has attracted many customers from these stores by guaranteeing 48 hour delivery within a 50 mile radius of any of the stores they serve. Eventually, Exodus hopes to attract the business of other retailers who might require delivery services, such as electronics or appliance stores.
-(Scenario 1-5) Exodus Moving's advertising is designed to convince managers of local furniture stores that they should consider outsourcing their delivery needs instead of using their own in-house trucks and drivers. Which of the following best describes the types of advertising that Exodus is using based on functional goals?
Percentage Depletion
A tax deduction method allowing businesses to account for the decrease of reserves in natural resources through a percentage of the revenue generated from those resources.
Cost Depletion
An accounting method used for allocating the cost of natural resources (like timber, oil, or minerals) over the period that they are extracted and sold.
Income Tax Allocation
The process of assigning income taxes to different departments, periods, or product lines in financial accounting.
Pretax Financial Income
The amount of income that a company has earned before any taxes have been deducted, as reported on the income statement.
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