Which One of the Following Activities Would Most Likely Be

question 102

Multiple Choice

Which one of the following activities would most likely be considered a long-run pricing decision?

• A) one-time-only special order pricing that would result in achieving the break-even point
• B) product mix adjustments in a competitive market
• C) setting prices to generate a reasonable rate of return on investment
• D) changing prices in response to weak demand

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Definitions:

Estimated Useful Life

Estimated Useful Life is the expected time period over which a fixed asset is projected to be usable for its intended purpose, affecting depreciation calculations.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, determining the account's increase direction.

Financial Statement

Reports that summarize a company's financial performance, status, and cash flows over a specified period.

Permanent/Temporary

A classification that distinguishes between actions or objects that are intended to last indefinitely (permanent) and those expected to change or conclude after a certain period (temporary).