Which of the Following Is a Disadvantage of Using Samples

question 35

Multiple Choice

Which of the following is a disadvantage of using samples as a consumer sales promotion tool?

• A)They require high creativity.
• B)They incur high cost to a firm.
• C)They discourage trial.
• D)They reduce direct involvement of consumers.
• E)They result in a reduction of sales.

Discuss the impact of repair and maintenance costs on the selection of depreciation methods.

Determine the original cost of an asset given its residual value, useful life, and depreciation expense.

Calculate and understand composite depreciation rates and their application to asset groups.

Record and explain the accounting treatment for asset impairments under IFRS and GAAP.

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Definitions:

FOB Shipping Point

A term used in shipping agreements indicating that the buyer is responsible for the goods and the shipping costs as soon as they leave the seller’s premises.

Sales Revenue

The earnings a business obtains through the sale of products or the delivery of services.

Trade Discount

A reduction in the listed price of a product or service, offered by sellers to buyers in the same trade or industry.

Purchase Price

The amount of money paid to buy goods or services.