Use This Information for Questions That Refer to the Super

question 124

Multiple Choice

Use this information for questions that refer to the Super Gaming Company and Accessories (SGCA) case.
Kayla Jurgenson, marketing manager for Super Gaming Computers and Accessories (SGCA) , is reviewing her company's plans for the coming year.
SGCA sells its products through retail computer dealers and some specialty gaming stores. Currently, SGCA is carried in 25 percent of all retail computer stores nationwide, but in California is carried in only 10 percent of stores. So, Kayla has set an objective of being in 25% of all retail computer stores in California within one year.
SGCA plans to introduce a new SuperDuperGamer model with special features that fits its target market of teen and young adult gamers. The SuperDuperGamer uses a new technology and is expected to be a breakthrough product, but it will be important to build awareness for it to succeed. So, the advertising objective is for 40% of SGCA's target market to be aware of the new SuperDuperGamer model within 3 months. SGCA also wants to help its retailers reduce their current stock of SuperGamer computers before the new model comes out in a month. The SuperGamer has been on the market for two years and has been a top seller in the category. SGCA's advertising objective for the SuperGamer computer is to reduce current dealer stock by 80% within the next month.
SGCA is also introducing a SuperEnhancer sound card, which is designed to significantly enhance the game-playing experience with older computers. Research with gamers show that it is very well received, so the advertising objective for the SuperEnhancer sound card is to gain 40% market share among all gaming-specific sound cards in the next year. To help achieve that objective, Jurgenson is planning to use an ad that shows the sound card and a game player being knocked off his chair by the sound. The headline on the ad reads, "9 Out of 10 Gamers Say that the SuperEnhancer Sound Beats All Others!"
-About 10 years ago, most of SGCA's target customers did not even know what a sound card was or that computer audio could be upgraded. What type of advertising was needed at that time?

• A) institutional advertising
• B) reminder advertising
• C) cooperative advertising
• D) pioneering advertising
• E) direct competitive advertising

Comprehend the calculation of unrealized gains or losses on joint venture investments.

Grasp the principles of depreciation for accounting and tax purposes, including the concept of temporary differences and their impact on deferred tax assets or liabilities.

Identify reportable segments as per revenue, profit, and asset tests and the criteria for operating segment under GAAP.

Analyze the financial impact of joint ventures on the income statements and balance sheets of the investing companies, including equity method accounting.

---

Definitions:

Bulimia Nervosa

An eating disorder characterized by cycles of binge eating followed by purging to prevent weight gain, involving behaviors such as vomiting, fasting, or excessive exercise.

Laxatives

Substances taken to stimulate bowel movements, often used to treat constipation.

Deductive Thinking

A logical process where a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Inductive Thinking

A cognitive process that encompasses deriving broad inferences from particular examples or situations.