According to Some Economists,firms in Some Industries Gain a Performance

question 35

Multiple Choice

According to some economists,firms in some industries gain a performance advantage by:

• A)dumping.
• B)charging a zero price for products.
• C)clustering.
• D)reducing R&D spending.
• E)increasing labor wage.

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Definitions:

Inventory Turnover

A metric that measures the number of times a company sells and replaces its stock of goods during a certain period.

Lower of Cost

This accounting principle requires that the inventory or stock should be reported at the lower of its cost or the market value.

Market Method

An appraisal technique used to determine the value of an asset based on the current market price of comparable assets.

Replacement Cost

The cost to replace an asset with another of similar kind and quality at current prices, often considered in insurance assessment and accounting.