By Using ,A Company Deliberately Sets a Low Price with the Intention

question 125

Multiple Choice

By using ,a company deliberately sets a low price with the intention of driving its competition out of business.

• A)predatory pricing
• B)loss leader pricing
• C)price- fixing
• D)contrast pricing
• E)price lining

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Definitions:

Residual Value

The estimated amount that an asset will realize upon its disposal at the end of its useful life, less the cost of disposal, if any.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against an asset since it was acquired.

Gain on Sale

The profit earned from selling an asset for more than its purchase price.

Net Realisable Value

The projected sales price under normal business operations minus the anticipated expenses to complete and the estimated costs required for the sale.