Some Companies Are Reversing the Fixed Pricing Trend and Using

question 69

Multiple Choice

Some companies are reversing the fixed pricing trend and using _.

• A)captive pricing
• B)promotional pricing
• C)segmented pricing
• D)dynamic pricing
• E)geographical pricing

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Definitions:

Treasury Stock Approach

A method of calculating the effect of share options on diluted earnings per share by assuming treasury shares are bought at the average market price.

Long-Term Liabilities

Liabilities that are not due to be settled within the next 12 months.

Equity Method

A method of accounting in which an investor records its investment in another entity at original cost and subsequently adjusts this amount for its share of the profits or losses of the investee.

Deferred Losses

Losses that have been recognized in the financial statements but are not yet realized through actual transaction, to be recognized in future periods.