Management Accounting - Study Mode
[#141] If cost of goods sold is $8000, gross margin is $5000 then revenue will be
Correct Answer
(A) $13,000
Explanation
Solution: Revenue = Cost of goods sold + Gross margin = $8000 + $5000 = $13,000.
[#142] Competitiveness can be best measured by
Correct Answer
(A) Gross margin
Explanation
Solution: Competitiveness can be best measured by gross margin. Gross margin is a company's net sales revenue minus its cost of goods sold (COGS). In other words, it is the sales revenue a company retains after incurring the direct costs associated with producing the goods it sells, and the services it provides.
[#143] Practice by seller of offering same product at different prices, to different customers is known as
Correct Answer
(B) price discrimination
Explanation
Solution: Practice by seller of offering same product at different prices, to different customers is known as price discrimination. Price discrimination is a selling strategy that charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to.
[#144] Total cost incur by customer to use, acquire, maintain and dispose service or product is classified as
Correct Answer
(C) customer life cycle
Explanation
Solution: Total cost incur by customer to use, acquire, maintain and dispose service or product is classified as customer life cycle. The customer lifecycle is a term that describes the different steps a customer goes through when they are considering, buying, using, and remaining loyal to a particular product or service. This lifecycle has been broken down into five distinct stages: reach, acquisition, conversion, retention, and loyalty.
[#145] If cost is eliminated, then reducing perceived usefulness that customers can obtain by using market offering will come under
Correct Answer
(C) value added cost
Explanation
Solution: If cost is eliminated, then reducing perceived usefulness that customers can obtain by using market offering will come under value added cost. A value added cost is incurred when an asset is consumed in order to increase the value of goods or services to the consumer.