The owner of a flower shop decided to sell a dozen red roses for $13.50. He hopes the below-cost price for the roses will attract current and new customers who will also buy regularly priced items. The manager is encouraging store patronage through which of the following?

Lower-of-cost-or-market

a. is most conservative if applied to the total inventory. b. is most conservative if applied to major categories of inventory. c. is most conservative if applied to individual items of inventory. d. must be applied to major categories for taxes.

If a company wants to be a price-taker, which of the following strategies should be taken?

A) Enter a competitive market and focus on cost cutting. B) Produce a unique product. C) Exploit the value of a fashionable brand name. D) Differentiate the product clearly from the competitors.