A Middle-Class Customer (Target) Base in a Region Is Most

question 28

Multiple Choice

A middle-class customer (target) base in a region is most concerned with quality and price of products. Which of the following would be considered a best value proposition for the customers?

• A) a company that identifies unique features of its products without comparing it with a rival's products
• B) a company that offers copycat products at low cost but an average quality compared to rivals
• C) a company that offers the same quality of products as rivals but at a high cost based on greater market share and higher brand value
• D) a company that provides same quality of products at a much lower price than rivals, but leaves the final assembly of product pieces to customers with an easy assembly guide
• E) a company that sells an average quality product compared to rivals with a meager difference in price

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Definitions:

Temporary Account Balances

Accounts that are closed at the end of each accounting period, including revenues, expenses, and dividends accounts.

Net Income

The net gain a company achieves after all operational costs and taxes are removed from its entire revenue.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary accounts' balances to permanent accounts, thereby preparing the books for the next period.

Revenue Account

An account in financial accounting used to record income generated by a company's ordinary activities.