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According to the response allocation approach, reinforcement effects occur because
U.S. GAAP
The Generally Accepted Accounting Principles in the United States, a common set of accounting rules and standards for financial reporting.
IFRS
International Financial Reporting Standards, a set of accounting guidelines that provide a global framework for how public companies prepare financial statements.
Lower of Cost
An accounting principle requiring that inventory be recorded at the lower of its original cost or current market value.
Matching
An accounting principle where expenses are recorded in the period they are incurred to generate revenues.
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