Match Each Phrase That Follows with the Term (A-E) It

question 81

Short Answer

Match each phrase that follows with the term (a-e) it describes. Some terms may not be used and other terms may be used more than once.
-A common practice in many high-fixed-cost service businesses
A)Total cost method
B)Variable cost method
C)Normal selling price
D)Product cost method
E)Yield pricing

• A)Total cost method
• B)Variable cost method
• C)Normal selling price
• D)Product cost method
• E)Yield pricing

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Definitions:

Stock Price

This is the current price at which a share of a company is bought or sold in the market.

Insolvent Firm

A business that cannot meet its financial obligations as they come due because its liabilities exceed its assets.

Prior Earnings

The amount of profit a company made in a preceding period, often used as a benchmark or comparison for current financial performance.

Dividend Irrelevance Theory

The theory that suggests that dividend policy has no effect on either the price of a firm's stock or its cost of capital.