Premiums, as a Consumer Promotion Tool, Are Defined as ________

question 69

Multiple Choice

Premiums, as a consumer promotion tool, are defined as ________.

• A) offers to consumers of savings off the regular price of a product, flagged on the label or package
• B) certificates entitling the bearer to a stated saving on the purchase of a specific product
• C) programs providing rewards related to the consumer's frequency and intensity in purchasing the company's products or services
• D) merchandise offered at a relatively low cost or free as an incentive to purchase a particular product
• E) values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors

---

Definitions:

Property, Plant and Equipment

Tangible assets that are held for use in the production or supply of goods and services, rental to others, or administrative purposes and are expected to be used during more than one financial period.

Asset Recognition

The criteria and process for recording assets on the balance sheet when it is probable that future economic benefits will flow to the entity.

Cost Measurement

The process of determining the cost of a specific item, project, or activity, which can include both direct and indirect costs.

AASB 116

An Australian Accounting Standard Board regulation that outlines the accounting treatment for property, plant, and equipment, including recognition, measurement, and depreciation.