Assume you are preparing journal entries for the General Fund under the consumption method. What account should be debited when office supplies are ordered?

What are products that consumers see as being basically the same, so consumers shop for the lowest price?

a. product equivalents b. heterogeneous shopping products c. low-prestige specialty products d. homogeneous shopping products

Which of the following is a drawback of cost-based pricing?

A) Sellers earn a fair return on their investment. B) By tying the price to cost, sellers simplify pricing. C) When all firms in the industry use this pricing method, prices tend to be similar. D) This method ignores demand. E) Without a standard markup, consumers don't know when they are being overcharged.