In Order to Use the Cost Method of Accounting for Stock

question 138

Multiple Choice

In order to use the cost method of accounting for stock investments, how much stock must the investor own?

• A) Less than 20%.
• B) More than 50%.
• C) Between 20% and 50%.
• D) The cost method is always used for stock investments of any size.

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Definitions:

Price Discrimination

A pricing strategy where a company charges different prices for the same product or service to different consumers, often based on factors like location, age, or purchasing history.

Practices

Routine actions or procedures followed by individuals or organizations in their professional or daily activities.

Goods

Tangible products or items that are produced or manufactured for sale and consumption.

Robinson-Patman Act

A United States federal law that aims to prevent anticompetitive practices by producers, specifically price discrimination.