The Practice of Managing and Intentionally Setting Discontinue Dates for Products

question 69

True/False

The practice of managing and intentionally setting discontinue dates for products is known as planned obsolescence.

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Definitions:

Common Size Income Statement

An income statement in which each line item is expressed as a percentage of sales, facilitating comparison across companies or periods regardless of size.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Sales

The total amount of goods or services sold by a company in a particular period of time.

Z Score Model

A statistical model that predicts the probability of a company going bankrupt based on several financial ratios derived from the company's financial statements.