Explain the Difference Between a Change in Demand (Supply)and a Change

question 32

Essay

Explain the difference between a change in demand (supply)and a change in quantity demanded (supplied).

Understand the perpetual inventory system including the recording process for sales and purchases of merchandise inventory and associated costs.

Calculate financial ratios such as the gross margin ratio, current ratio, and acid-test (quick) ratio, and interpret their significance regarding profitability and liquidity.

Match accounting definitions with their corresponding terms.

Differentiate between the periodic and perpetual inventory systems and understand the impact on accounting records.

---

Definitions:

Organizational Buying Behavior

The decision-making process by which formal organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers.

Decision-Making Process

The cognitive process leading to the selection of a course of action among several alternatives, often involving steps such as problem recognition and evaluation of alternatives.

Organizational Buying

The process through which formal organizations determine the necessity for products and services to be purchased, and assess and select from different brands and suppliers.

Problem Recognition

The initial step in the consumer decision process that occurs when a consumer identifies a need or problem that needs to be solved.