The Possibility That Existing Customers Will Expect Lower Prices Is

question 108

Multiple Choice

The possibility that existing customers will expect lower prices is a qualitative factor that managers should consider in:

• A) Product line keep and drop decisions
• B) Special order decisions
• C) Cost prediction decisions
• D) Make or buy decisions

Apply the appropriate cost of capital for evaluating capital budgeting projects based on funding sources.

Recognize the bases for the component costs of capital.

Compare the cost of external equity with the cost of retained earnings and understand flotation costs.

Evaluate the conditions under which retained earnings should be considered the first source of capital.

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Definitions:

Extinction Procedure

A behavioral psychology technique involving the discontinuation of reinforcements for a certain behavior, leading to its reduction or elimination.

Reinforced

Strengthened or made more effective through added support, material, or structure.

Eliminated

Refers to the removal or deletion of something, making it no longer present or effective.

Identified

Recognized or discovered to be a certain person or thing.