By 2017, Pepsi and Coke Were Attempting to Increase Their

question 36

Multiple Choice

By 2017, Pepsi and Coke were attempting to increase their profits in the bottled water market by introducing premium water brands.Pepsi and Coke introduced LIFEWTR and Smartwater, respectively, while competitors like Nestle and Danone produced their own versions of premium water.The premium water brands marketed to compete with LIFEWTR and Smartwater would be considered

• A)complements to LIFEWTR and Smartwater.
• B)substitutes for LIFEWTR and Smartwater.
• C)inferior goods compared to LIFEWTR and Smartwater.
• D)normal goods compared to LIFEWTR and Smartwater.

---

Definitions:

Normal Profit Margin

The average amount by which a company's sales exceed its cost of goods sold and operating expenses, representing a standard level of profit.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for how public companies prepare and disclose their financial statements.

Periodic Inventory System

An inventory accounting system where updates to the inventory account occur at specific intervals, such as monthly or annually, rather than continuously.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.