Of the Following,which Is the Least Likely to Represent a Firm's

question 92

Multiple Choice

Of the following,which is the least likely to represent a firm's long-run decision?

• A)What should be the size and design of a firm's new plant?
• B)Should the firm choose a method of production that uses relatively more capital than labour?
• C)By how much should output be expanded from existing plants?
• D)Should the firm invest resources in the development of better technologies?
• E)What technique (technology)is the best to use under current factor pricing?

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Definitions:

Fair-value Method

An accounting strategy used to measure and report assets and liabilities on the basis of estimated fair market prices.

Equity Method

An accounting technique used to record investments in associated companies, recognizing the investor's share of the investees' income.

Retrospective Change

An adjustment applied to prior period financial statements to correct an error or reflect a new accounting policy as if it had always been applied.

Goodwill

An intangible asset that represents the surplus value of a company beyond its physical assets and liabilities, often arising from factors such as brand reputation, customer relationships, or intellectual property during an acquisition.