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Scenario 11-2
After years of development and testing, Jabra Corporation unveiled the Jabra 1000 earbud phone. The entire device fits in your ear. It resembles those tiny in-ear speakers that let you listen to an iPod in private-except that Jabra's unit is a transmitter as well. It picks up your voice by amplifying sound vibrations in your bones. Therefore, there's no microphone boom to jut out in front of your face. Because the bone vibrations must be amplified, a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds. This anti-noise chip generates a mirror image of outside noises, and the colliding sound waves erase each other. The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak. This tech-talk isn't cheap: the earbud phone lists for $329.
-Refer to the scenario. When the first Jabra 1000 was sold, the initial sale signalled the start of which stage of the product life cycle?
Date of Acquisition
The exact date on which one company obtains control of another, which is crucial for financial reporting and integration processes.
Fair Value Method
An accounting approach that measures and reports assets and liabilities at their estimated market value.
Proportionate Interest Goodwill Method
An accounting approach that allocates goodwill based on the proportionate interests of existing owners and new investors in a combination.
Proprietary Concept
A financial accounting principle where the business is considered separate from its owners, focusing on the owner's perspective in accounting records.
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