Microsoft Sells Its Corporate Customers Large Computer Systems That Include

question 155

Multiple Choice

Microsoft sells its corporate customers large computer systems that include a three-year service contract.Microsoft promises that for three years it will update the systems whenever the customers need modifications and that it will also provide extensive customer support.Microsoft has chosen to recognize all revenue for these systems over the three-year life of the service contracts rather than when the systems are installed.Microsoft's accounting choice would be considered ________.

• A)conservative
• B)fundamental
• C)basic
• D)aggressive

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Definitions:

All-You-Can-Afford Budgeting

A budgeting strategy that involves spending the maximum available resources on marketing or other business activities, based on what one can afford.

In-Store Samples

Small quantities of a product given to customers within a retail location for free to try before they buy.

Direct Marketing

A form of advertising where companies communicate directly with consumers through various media channels to promote products or services.

Competitive Parity Budgeting

A method of setting a marketing budget based on matching competitors' spending to maintain market share and prevent competition from outspending.