Suppose a retailer had a beginning inventory of 20 iPhones bought at 100 . During the entire year he sold 16 iPhones at 180 each. Also he bought 8 pieces in May for 130 and 4 more in September for 150 . The value of the ending inventory under the LIFO and FIFO methods would be 1600 and 2,040 respectively.
Indicate whether the statement is true or false
Question 2If you do a test market in St. Louis for a new product, and your major competitor notices it and lowers the price of its substitute product by 15 percent, which internal validity extraneous variable will be affected?
a. Maturation
b. Testing
c. Instrumentation
d. History
Question 3Many countries have developed policies to limit free trade to protect local businesses.
Indicate whether the statement is true or false
Question 4Which of the following is false about LIFO?
a. Costs of goods sold are based on the costs of the oldest inventory purchased.
b. It was designed to cushion the effects of inflation.
c. It matches current costs against current revenues.
d. Older inventory is regarded as unsold inventory.
e. It is used for planning purposes as it accurately reflects replacement costs.
Question 5If you try out your marketing plan for a new product in supermarkets in Kansas City, what type of study is this?
a. Laboratory experiment
b. Field experiment
c. Mall intercept experiment
d. Price experiment
Question 6International trade first developed in the late 19th century.
Indicate whether the statement is true or false
Question 7During periods of high inflation, which method of inventory pricing would a retailer use to lower taxes?
a. Retail method
b. Last In First Out (LIFO)
c. Cost method
d. First In First Out (FIFO)
e. IRS flexible system
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