Stellar Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2020. Replacement Cost/Unit Estimated Selling Price/Unit $11.24 Item Unit Cost Quantity 1,800 Completion & Disposal Cost/Unit $1.61 0.96 Normal Profit Margin/Unit $1.93 1.28 A $8.99 $8.03 8.77 B 1,500 8.45 10.06 с 5.99 5.78 1.23 0.64 1,700 1,700 D 0.86 7.70 6.74 7.17 4.07 6.85 1.61 4.49 6.74 E 2,100 0.75 1.07 Greg Forda is an accounting clerk in the accounting department of Stellar Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant.
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When determining an asset's value for inventory accounting, the NRV method is frequently utilised. Accounts receivable and inventory are two of the biggest assets that a firm may disclose on a balance sheet. Both of these asset classes are valued using the NRV method.
The NRV adheres to a more traditional method of accounting. In circumstances where professional judgement is necessary for the appraisal of the transactions, the conservatism approach instructs accountants to adopt valuation methods that yield a smaller profit and do not overestimate the worth of the assets.
In the lower cost or market method of accounting reporting, net realisable value is a crucial measure. The inventory of the company must be reported on the balance sheet at a lower value than either the historical cost or the market value under the market method reporting technique. The net realisable value can be used as an approximation of the market value if the inventory's market value is uncertain.
For the given question, the solution is attached in the form of image.
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the west Division of Cecchetti Coporation had average operating assets of $240,000 and net operating income of $42,200 in August. The minimum required rate of return for performance evaluation purposes is 19%
What was the West Division minimum required return in August ?
The right answer is $45,600
Answers
The minimum necessary return for the West Division in August is $ (3,400) Negative
What minimum rate of return is necessary?The required rate of return (RRR) is the lowest rate of return an investor will accept for holding shares of a company in exchange for a certain amount of stock-related risk. In corporate finance, the RRR is also used to evaluate the profitability of new investment projects.
How to calculate the minimum necessary return.The difference between the Net Operating Income and the Minimum Required Return would be used to determine the residual income for the West Division in August.
= $42,200 – ($240,000 x 19%)
= $42,200 - $45,600
= (-3,400)$ Negative
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in a cost-benefit analysis the development or purchase of software is generally considered a(n)
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in a cost-benefit analysis the development or purchase of software is generally considered as a operating costs.
What do you mean by operating costs?The continuing costs associated with conducting business on a day-to-day basis are known as operating costs. Costs of goods sold (COGS) and other operating costs, also referred to as selling, general, and administrative (SG&A) costs, are both included in operating costs. In addition to COGS, typical operating expenses could also include rent, tools, inventory prices, marketing, payroll, insurance, and money set aside for R&D. The income statement of a business can be used to locate and assess operating costs.
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marin company makes several products, including canoes. the company reports a loss from its canoe segment (see below). all its variable costs are avoidable, and $307,500 of its fixed costs are avoidable. segment income (loss) sales $ 1,009,400 variable costs 721,000 contribution margin 288,400 fixed costs 349,000 income (loss) $ (60,600) (a) compute the income increase or decrease from eliminating this segment. (b) should the segment be continued or eliminated?
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Contribution margin is the profit that remains after variable costs are deducted from revenue, while gross margin is the profit that remains after the cost of goods sold is deducted from revenue.
What is margin for contributions?According to Knight, "Contribution margin shows you the aggregate amount of revenue available to cover fixed expenses and provide profit to the company after variable costs."This could be thought of as the portion of sales that helps pay for fixed costs.
How is Contribution Margin Calculated?The contribution margin is determined by dividing variable costs by revenue. The formula for determining the contribution margin ratio is Revenue / (Revenue - Variable Costs).
Sales 1009400 0 -1009400 less Variable Costs 721000 0 721000 less Contribution Margin 288400 0 -288400 less Fixed Costs 349000 307500 41500 less Net Income (Loss) -60600 -307500 -246900.
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you work for a company based in phoenix, arizona, which is a very hot and dry area. several people in the research department have reported that even though their files are printing to the laser printer correctly, a much lighter copy of the same text also prints within 2 to 3 cm of the original text. which of the following would most likely fix this type of ghosting image?
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This type of ghosting image of the laser printing can be avoided by replacing the imaging drum, as it is probably very old.
The correct option is a.
When an image artefact called "monitor ghosting" happens, it leaves a trail of pixels behind a moving object that resembles motion blur. Because it leaves a trace of the picture that resembles a ghost, this is known as "ghosting."
Ghost prints occur when your printer's fuser or drum unit develops a problem. The markings being created on the paper are considerably lighter in colour and seem more faded than ordinary papers because a problem with this element won't heat the toner particles to a high enough temperature.
The question is incomplete. The complete question is:
You work for a company based in Phoenix, Arizona, which is a very hot and dry area.
Several people in the research department have reported that even though their files are printing to the laser printer correctly, a much lighter copy of the same text also prints within 2 to 3 cm of the original text.
Which of the following would MOST likely fix this type of ghosting image?
a. Replace the imaging drum, as it is probably at end of life.
b. Use pre-printed paper that has been printed with laser-compatible print toner.
c. Remove the jammed paper following its regular path.
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assuming the market rate is still 14%, what price would a second investor pay the first investor on june 30, 2026, for $14,000 of the bonds?
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Assuming the market rate is still 14%, the price a second investor will pay the first investor is $21840.
How to determine the market value of bonds?We should understand that market rate entails the percentage accrued on a n investment over a period of time.
The given parameters are
number of years = 4 years
Current value of the bond = $14,000
Now express 14% of 14000 by 4 years
This implies 0.14*14000*4
=$7840
Now add the percentage for 4 years to the initial value of the bond to get
14000+7840
=$21840
In conclusion, the second investor would pay the first investor the sum of $21840 the year 2026
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an economy is employing 5 units of capital, 5 units of raw materials, and 10 units of labor to produce its total output of 100 units. each unit of capital costs $10; each unit of raw materials, $4; and each unit of labor, $3. the per-unit cost of production in this economy is
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The per-unit cost of production in this economy is 0.25.
An economy is a system of inter-related production and consumption activities that ultimately verify the allocation of resources at intervals a bunch. the assembly and consumption of products and services as an entire fulfill the requirements of these living and operative at intervals it.
The per-unit cost of production refers to each the variable prices and stuck prices related to manufacturing and delivering one unit of any product to an finish client. observation your price of products sold-out helps produce context to line rating and guarantee profit is generated.
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A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:
A. Shareholders
B. Customers
C. Board of Directors
D. Community
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A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its Shareholders.
The ownership theory of a company aims to maximize shareholders' returns. Increasing shareholder value is a priority. It focuses on how well a company can generate more revenue to last for a long time and give shareholders, the actual owners, adequate returns. If the business is successful, the shareholders will receive higher long-term returns and dividend shares because they will own a larger portion of the business.
Ownership:
It is referred to as ownership when someone has total control over something. With an exclusive legal right, it has the ability and authority to use the relevant resources for output generation.
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which kind of messages can be used in problem-solving based on using the competition (win-lose) style of conflict management?
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In that one conforms to or obliges another without offering personal input, the accommodating conflict management approach is generally seen as passive or submissive and implies a low concern for oneself and a great concern for others.
What is the main danger of using a combative, competitive style?Cons: A competitive style may come out as hostile, combative, and aggressive. The biggest disadvantage of a competing style is that it can damage relationships, sometimes irreparably.
Which method of handling conflict involves ignoring or discussing things subtly?When there is a disagreement, one individual may use passive-aggressive conduct, in which case they express their negative emotions or thoughts by engaging in nonverbal activities like procrastinating.
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what is true about lead time? group of answer choices it does not tell you how much inventory is in your process it tells you who will lead the evaluation of cycle time it only useful to identify how much inventory is delaying the output of work it tells you how long the customer needs to wait until product is completed
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Lead time is the period of time from the morning of a procedure to its completion.
In the pre-processing, processing, and post-processing stages of the manufacturing, force chain, and design operation processes, businesses estimate supereminent times. They can identify inefficiencies by comparing results to destined marks. Streamlining processes and boosting productivity can increase affairs and profit.
Longer lead times, still, have a negative impact on the manufacturing and deals processes. Lead time describes the quantum of time demanded to perform a procedure from launch to finish. Lead time in manufacturing constantly refers to the quantum of time it takes to produce a product and deliver it to a client.
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stone industries uses flexible budgets. at normal capacity of 16,000 units, budgeted manufacturing overhead is: $48,000 variable and $270,000 fixed. if stone had actual overhead costs of $321,000 for 18,000 units produced, what is the difference between actual and budgeted costs? question 10 options: $3,000 unfavorable $9,000 unfavorable $3,000 favorable $12,000 favorable
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The Actual cost is less than the Budgeted, so the difference between actual and budgeted costs is $3,000 is favorable.
The computation of actual and budgeted costs is shown below:-
Budgeted Actual
(18,000 units) (18,000 units)
Variable $54,000
($48,000 ÷ $16,000) × $18,000
Fixed $270,000
Total $324,000 $321,000
Therefore, the Actual cost is less than the Budgeted, so the difference between actual and budgeted costs is $3,000 is favorable.
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The sales philosophy and process that emphasizes a commitment to maintaining customer relationships over the long term and investing in opportunities that are mutually beneficial to all parties is known as ________ selling.
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The sales process and mindset that place a strong emphasis on a dedication to long-term client relationships and investing in prospects that seem to be mutually beneficial Relationship marketing
How does relationship selling work?When using the relationship selling strategy, a salesperson puts their relationship with the consumer before all other elements of the sale. They build trust before making an effort to close, usually by providing value and investing a lot of time with prospects.
What different forms might relationship selling take?Transactional, functional, affiliative, & strategic interactions are the four different kinds of connections between buyers and sellers. The four fundamental sales techniques that salespeople employ are needs-satisfaction marketing, consultative selling, strategic partner selling, and script-based selling.
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question content area current liabilities are a.payable if a possible subsequent event occurs b.due, but not payable for more than 1 year c.due and receivable within 1 year d.due and to be paid out of current assets within 1 year
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Current liabilities are due and to be paid out of current assets within 1 year.
In accounting, current liabilities are often understood as all liabilities of the business that are to be settled in cash within the fiscal year or the operating cycle of a given firm, whichever period is longer.
Current liabilities include accounts payable, short-term debt, dividends and notes payable as well as income taxes owed.
The analysis of current liabilities is important to investors and creditors. This can give a picture of a company's financial solvency and management of its current liabilities.
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when an auditor of financial statements has substantial doubt about an entity's ability to continue as a going concern, the auditor most likely would express a qualified or adverse opinion if:
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If information about an entity's ability to continue as a going concern is not disclosed in the financial statements, an auditor of financial statements is likely to express an adverse opinion.
Define a qualified or adverse opinion.A remark made in an auditor's report that is attached to a company's audited financial statements is known as a qualified opinion. According to an auditor's judgment, a company's financial information may have been incomplete or there may have been a significant problem with how generally accepted accounting standards (GAAP) were applied, but the problem was not widespread.
With one or more exceptions, the financials often reflect the company's success and position. The financial statements are inaccurate or do not adhere to widely accepted accounting rules, in our opinion (GAAP).
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your training will begin next week on monday at 10 a.m. you will begin by meeting our human resources manager. which is the best revision for the e-mail’s subject line?
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Your training will begin next week on Monday at 10 a.m. and you will begin by meeting our human resources manager and new hire schedule is the best revision for the e-mail’s subject line.
Human resources managers set up, coordinate, and direct the executive functions of a corporation. They administrate the recruiting, interviewing, and hiring of latest staff; visit high executives on strategic planning; and function a link between an organization's management and its staff. He maximize worker performance in commission of an employer's strategic objectives.
The subject line of an e-mail is that the single line of text folks see after they receive your e-mail. This one line of text will usually confirm whether or not an e-mail is opened or sent straight to the trash, thus make certain it's optimized for your audience.
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benjamin retired at age 62 and began to collect social security retirement benefits. after a year of playing 3 rounds of golf per day, ben is bored and decides to go back to work part-time. in 2019 (when benjamin is age 63) he
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The correct option (b) 13,000.
As Benjamin has earned $25,720 at his part time job and it is greater than the threshold of $15,720 for 2016, excess income above threshold = 25,720 - 15,720 = $10,000
Social Security will deduct $1 for every $2 above this thershold limit.
So, Adjustment value = $10,000 / 2 = $5000
So, Actual Social Security benefit = $18000 - $5000 = $13,000
Social Security A retirement benefit is a regular payment that replaces a portion of your income when you cut back on or quit your job. As you get older, it might not completely replace your income, so it's best to find other ways to cover your monthly expenses.
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Full Episode : Benjamin retired at age 62 and began to collect Social Security retirement benefits. After a year of playing 3 rounds of golf per day, Ben is bored and decides to go back to work part-time. In 2016 (when Benjamin is age 63) he earns $25,720 at his part time job. His social security benefit before any adjustment for 2016 is $18,000. What will his actual Social Security benefit be for 2016? (a) $10,000. (b) $13,000. (c) $14,667. (d) $18,000.
what are some ways marketers use spreadsheet programs?
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Answer: Managerial authority over and appreciation for workers' efforts and advancement, Improving the client information base, Keeping a close eye on the market, Keep tabs on how well each product is selling and how much money it's making.
management tries to maintain consistent, regular dividend distributions to encourage any dividend cuts in the future and prevent a negative signaling effect. true false
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Management tries to maintain consistent, regular dividend distributions to encourage any dividend cuts in the future and prevent a negative signaling effect. - true
management consists of the sports of putting the approach of an organisation and coordinating the efforts of its personnel (or of volunteers) to perform its goals through the application of to be had sources, consisting of financial, natural, technological, and human sources. "Run the commercial enterprise"[1] and "alternate the enterprise" are two principles which are utilized in control to distinguish between the continuing shipping of products or offerings and adapting of products or services to satisfy the converting needs of clients - see fashion. The term "management" may additionally talk over with the ones individuals who control an employer—managers.
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what term best describes a scenario in which an employer subsidizes the purchase of an employee's personal mobile device, giving the employee the option of buying a more expensive device if the employee pays the difference?
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The circumstance in which an employer covers a portion of the cost of an employee's personal mobile device, enabling the employee to buy a more expensive device provided they pay the difference, is best described as "shared ownership."
To lessen the owners' financial burden is the most frequent justification for joint ownership of a residence. A joint mortgage application may be made by two or more people, who may then divide the debt equally or unequally. Every applicant's income, credit history, and debt-to-income ratio will be taken into consideration by the lender.
They might not wish to pursue a combined mortgage if one person's credit could adversely affect an application for a mortgage. They might provide the down payment in this situation and allow the person with superior credit to hold the mortgage in their name.
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The following cost information pertained to the Violin Division of Stringing Music Co. and was based on monthly demand and sales of 100 units: Per-Unit Costs Variable production costs: Direct materials $120 Direct labor 150 Variable factory overhead 60 Fixed production costs: Depreciation (equipment) 20 Factory rent 48 Other 12 Total production cost $410 Variable selling & administrative costs $24 per unit Fixed selling & administrative costs $36 per unit Given a normal selling price per unit of $750, what is the contribution margin per unit sold for recurring (i.e., normal) sales? $336. $316. $276. $396. $630.
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Option (d), the contribution margin per unit sold for recurring revenue is $396. (i.e., normal)
How much contribution margin do you get each unit?The selling price of one unit of products less the variable costs associated with producing that unit constitutes the contribution margin per unit. Each sale provides a certain amount to covering fixed costs, which is known as the contribution margin per unit. It will show how much profit is made per unit sold after the fixed costs are paid.
Making repeating sales contribution margin calculations for each unit sold. Using this equation
Contribution margin per unit = Selling price (per unit) - (Direct material + Direct labor + Variable factory overhead)- Variable selling & administrative costs
Putting numbers in the formula,
Contribution margin (per unit) = $750 - ($120+ $150 + $60) - $24
Contribution margin (per unit) = $750 - $330 - $24
Contribution margin (per unit)= $396
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the static budget is an example of a: multiple choice question. variable budget fixed budget flexible budget
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A budget that employs anticipated quantities for a specific period prior to the period's start is known as a static budget.
How do fixed and flexible budgets compare?How exactly does the flexible budget operate? The first step in developing a flexible budget is identifying and budgeting for fixed spending. The management must determine what those costs will be and include them as fixed items in the budget at this stage of the process, which is the same as creating a static budget.
Static planning – what is it?Static planning is a method that ignores alterations to the external environment or internal operations of the company. As a result, it could result in erroneous projections and strategies.
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what are your goals when sending a message that refuses credit? check all that apply. preparing for possible future credit without raising false expectations retaining the customer on a cash basis avoiding disclosures that could cause a lawsuit avoiding language that causes hard feelings
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One goal when sending a message that refuses credit is to retain the customer on a cash basis.
Credit is the capacity to get funds on credit, as well as products or services, with the expectation that payment would be made later. Credit comes in a wide variety of ways. Financial or bank credit is the most often used type. These types of credit include lines of credit, mortgages, signature loans, and auto loans. In essence, when a bank loans money to a customer, the borrower receives a credit and is then required to repay the loan at a later time.
One purpose of issuing a letter denying credit is to keep the client on a cash basis. The avoidance of hurtful wording, planning for potential future credit without creating unrealistic expectations, and avoiding disclosures that can result in the legal action are other objectives.
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Which of the following provides a suite of integrated software modules for finance and accounting, human resources, manufacturing and production, and sales and marketing that allows data to be used by multiple functions and business processes?
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The ERP system offers a collection of integrated software modules for manufacturing and production, sales and marketing, finance and accounting, and human resources that enables data to be used by numerous business processes.
How does ERP operate and what does it do?
Business organizations use a class of software known as "enterprise resource planning" (ERP) to keep track of routine tasks like accounting, purchasing, project management, risk management, and compliance.
Enterprise performance management, a piece of software that aids in planning, budgeting, forecasting, and reporting financial outcomes for an organization, is also a component of a full ERP suite.
ERP systems enable data to flow between various business processes and connect them all together. ERP systems provide data integrity with a single source of truth by gathering an organization's shared transactional data from various sources, eliminating data duplication.
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on January 1, 2021 Grundy enterprises purchases in office building for $162,000 paying $42000 down and borrowing the remaining $120000, signing a 8% 10-year mortgage. installment payments of $1455.93 are due at the end of each month with the first payment due on January 31, 2021
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The journal of the purchase of the building on January 1, 2021 will be:
Dr Building $162,000Cr Cash $42,000Cr Notes Payable $120,000(Being purchase of building)A journal entry refers to the act of holding or creating records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that performance a company's debit and credit balances.
Based on the scenario we know that Gundy enterprises purchases an office building for the amount of $162,000 that it can be meant if they paid $42000 down and as well borrowed the remaining amount of $120,000 the journal entry to Record the purchase of the building on January 1, 2021 will be :
Dr Building $162,000
Cr Cash $42,000
Cr Notes Payable $120,000
(Being purchase of building)
The missing part in the question is shown below:
On January 1, 2021 Grundy enterprises purchases in office building for $162,000 paying $42000 down and borrowing the remaining $120000, signing a 8% 10-year mortgage. installment payments of $1455.93 are due at the end of each month with the first payment due on January 31, 2021.
Required:
Record the purchase of the building on January 1, 2021.
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which area(s) represent the amount of consumer surplus domestic consumers will enjoy after the tariff has been imposed?
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According to the graph A + B + C + D + E + F + G it represent the amount of consumer surplus domestic consumers will enjoy after the tariff has been imposed.
What concept will be applied when the domestic nation acts as a price taker, and its consumption and production have no impact on the global price?Due to its tiny size in comparison to global markets, the domestic market is a price taker, and neither its production nor consumption affects global prices. Therefore, the nation uses the international price as the domestic price for any good, service, or resource.
What distinguishes a tariff imposed by a big country from a small country's tariff?Due to its size, the huge nation's tariff not only lowers the amount of the thing that is sought, but it also could lower the product's global price.
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Jin-Lo is investing money for his company. He notices that the interest rate on borrowing in Jakarta is 2 percent and the interest rate on bank deposits in Warsaw is 7.5 percent. In this situation, a carry trade would occur when Jin-Lo
A.borrows money in Jakarta currency and invests in stocks with good growth potential in Jakarta.
B.borrows money in Jakarta currency, converts it into Warsaw currency, and deposits it in a Warsaw bank.
C.invests in bank deposits of Warsaw and reinvests the earnings in Jakarta.
D.invests in bank deposits of Jakarta and reinvests the earnings in Warsaw.
Answers
Jin-Lo is investing money in his company. He notices that the interest rate on borrowing in Jakarta is 2 percent and the interest rate on bank deposits in Warsaw is 7.5 percent. In this situation, a carry trade would occur when Jin-Lo borrows money in Jakarta currency, converts it into Warsaw currency, and deposits it in a Warsaw bank. Option B
What is investing money?Generally, You have the option of selecting assets on your own according to the way you choose to invest, which is known as the do-it-yourself approach, or you can seek the assistance of an investment professional, such as an advisor or broker.
Before you start investing, it is essential to evaluate your preferences and the amount of risk you are willing to take. If you don't like taking chances, investing in stocks and options might not be the ideal choice for you. Create a plan that details how much money to invest, how often to invest, and what kind of investments to make depending on your objectives and personal preferences.
Before you commit your resources to the target investment, you should conduct research on it to ensure that it is in line with your strategy and has the ability to achieve the benefits you are looking for. Keep in mind that you won't need a lot of money to get started and that you can make adjustments as your requirements shift.
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attracting is the role of marketing. engaging is the role of sales. delighting is the role of services. true false
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The purpose of marketing is to draw people in, which is true. The function of sales is to engage. The function of services is to delight.
What happens in the inbound marketing attract phase?The Attract stage is the first phase in the inbound marketing process. In this stage, you use content, SEO, and other techniques to draw outsiders to your website and convert them into visitors.
What function does a happy consumer serve?"To exceed expectations and leave a lasting impact for the customer" Even if you maintain a happy customer base, it's still simple for them to depart. If customers are pleased, it is harder for them to find another place to spend their money.
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what are the differences among the weak, semi-strong, and strong forms of the efficient market hypothesis?
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Weak Form EMH: All past information like historical trading prices and volume data is reflected in the market prices. Semi-Strong EMH: All publicly available information is reflected in the current market prices.
Describe trading. How does it function?Trading, in its simplest form, is the act of acquiring and disposing of financial assets (such as stocks, currencies, and indices) with the goal of making money from changes in their price movements.
Is switching careers a sensible move?If you have the correct knowledge and strategy, you might be able to make a solid career from the markets. When a person moves from the cash market to the derivative market, leverage can be their friend. Other professions include becoming a researcher or a trainer. A Research Analyst or Investment Advisor with a SEBI certification can engage in consulting.
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a boss whose management style emphasizes consensus-building and seeks out input from her employees is demonstrating a(n) style of leadership.
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A boss whose management style emphasizes consensus-building and seeks out input from her employees is demonstrating democratic style of leadership.
What kind of leadership style is democratic?Democracy literally translates to "governed by the people." Making room for multiple people to engage in the decision-making process is a key component of this leadership style. Participative leadership is another term frequently used to describe democratic leadership.
What does "democracy in management" mean?The people being led are actively involved in the democratic leadership approach, also known as participative management. Democratic leaders frequently ask their employees for advice and input. They promote discussion and involvement in the decision-making process.
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what are factors that are currently negatively affecting the russian economy? (choose every correct answer.)
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The factors that are currently negatively affecting the Russian economy includes:
An aging population and low birthrate that are leading to a shrinking population.International sanctions on Russia in response to its interference in foreign democratic elections.Widespread corruption that creates ethical dilemmas for foreign companies that might otherwise want to operate in the country.What problem is Russia facing?Based on current data, the Russian economy has been underperforming for 15 years due to poor institutions such as weak rule of law, poor protection of property rights, corruption and consequentially relatively low domestic and foreign investment. Now because of the war, the Russian economic prospects have gone from lackluster to dreadful.
Missing options "An aging population and low birthrate that are leading to a shrinking population. International sanctions on Russia in response to its interference in foreign democratic elections. Widespread corruption that creates ethical dilemmas for foreign companies that might otherwise want to operate in the country".
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Roger Wu has decided to buy a new Porsche. Since there are no Porsche dealers in his community, he must travel almost 200 miles to a find a Porsche dealer to purchase the car of his dreams. For Wu, a Porsche is a product. O generic O sought O specialty O shopping O nondurable
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Roger Wu has decided to buy a new Porsche. Since there are no Porsche dealers in his community, he must travel almost 200 miles to find a Porsche dealer to purchase the car of his dreams. For Wu, a Porsche is a specialty product.
A product is an item offered for sale. Products are services or items. It can be in physical or virtual or cyber form. All products are made at one price and sold at one price. Calculated prices vary by market, quality, marketing, and target segment.
Commodities are classified into four categories based on consumer habits, prices, and product characteristics: consumer goods, commodity goods, specialty goods, and nondurable goods.
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