Which Hierarchy Best Explains Impulse Purchases

question 131

Multiple Choice

Which hierarchy best explains impulse purchases?

• A) high-involvement
• B) low-involvement
• C) experiential
• D) behavioural

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Definitions:

Inventory Account

An account on the balance sheet representing the total cost of goods a company intends to sell to customers, including raw materials, work-in-progress, and finished goods.

Period-End

Marks the conclusion of an accounting period, at which point various accounting entries are finalized, and reports are prepared.

Current Asset Account

An account on the balance sheet representing the value of assets that are expected to be converted into cash, sold, or consumed within a year or the operating cycle, whichever is longer.

Inventory Returns Estimated

An accounting estimate of the goods that will be returned by customers and subtracted from sales revenue.