Time-Threads Inc

question 50

Multiple Choice

Time-Threads Inc. sells storage devices, such as memory cards, thumb drives, and external hard disks. Which of the following is most likely true if it achieves product differentiation by designing its products to perform more jobs than its competitors?

• A)Its thumb drives come with a tracker to help users locate them.
• B)Its memory cards offer more space than most others in the market.
• C)Its hard disks are designed for quicker copying of files from various mediums.
• D)Its instructions manuals are printed in more languages than its competitors.

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Definitions:

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Cash-Generating Unit

The minimal distinguishable collection of assets that creates cash inflows primarily independent from the cash inflows of other assets or asset collections.

Impairment Loss

The amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.

Net Carrying Amount

The value of an asset recorded in a company's financial statement, which is the original cost minus accumulated depreciation and impairment losses.