The effectiveness of insulation is referred to as its "R-value." The R stands for:
A: Required minimums;
B: Resistance to heat flow;
C: Replacement values;
D: None of the above.
Answer: B: Resistance to heat flow;
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Which of the following is true of skim pricing?
A) Skim pricing is most profitably used in the decline stage of the product life-cycle. B) Skim pricing is most useful to a business when there are many competitors in the market offering equivalent products. C) Skim pricing is most effective when product differentiation is diminishing, potential customers are price sensitive, and many competitors or substitutes exist. D) In skim pricing, a company tries to keep its costs as low as possible and to offer a low price that no competitor can beat. E) Skim pricing is viable when a business has a sustainable differentiation advantage in a quality-sensitive market with few competitors.
The normal cost for an activity is $7,000 and the crash cost is $12,000. The normal time to complete this activity is 8 days and crash time is 4 days. If this activity is crashed by 2 days it will cost an additional:
A) $1000 B) $1250 C) $2000 D) $2500