Consumers Often Rely on Decision Guidelines,or Mental Rules of Thumb,when

question 44

Multiple Choice

Consumers often rely on decision guidelines,or mental rules of thumb,when weighing the merits of competing brands.These rules are referred to as ________.

• A)evaluative criteria
• B)attitudes
• C)affects
• D)heuristics
• E)cognitions

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Definitions:

Straight-Line Depreciation

An arrangement for apportioning the financial burden of a physical investment throughout its active life in equal yearly disbursements.

Accounting Rate of Return

A financial ratio used to measure the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

After-Tax Net Income

The amount of money a company earns in a given period after all taxes have been deducted from gross income.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to assess the profitability of investments.