Consumers Spend Little Time and Effort Evaluating Alternatives in the Purchase

question 1

Multiple Choice

Consumers spend little time and effort evaluating alternatives in the purchase of table salt and milk.The purchase process for such items, called __________, is virtually a habit, and typifies low-involvement decision-making.

• A)routine problem solving
• B)limited problem solving
• C)extended problem solving
• D)situational problem solving
• E)rational problem solving

---

Definitions:

Direct Method

An approach to preparing the cash flow statement where actual cash flows from operating activities are listed.

Lower of Cost

An accounting rule where inventory is recorded at the lower of either its acquisition cost or market value at reporting time.

Allowance Method

An accounting technique used to estimate and account for doubtful debts, reducing accounts receivable to a realistic amount.

Direct Method

A way of presenting the cash flow statement where actual cash flows from operating activities are listed directly.