Which of the Following Is a Demographic Factor That Influences

question 48

Multiple Choice

Which of the following is a demographic factor that influences the pricing decision of a product?

• A) Buyers using price as an indicator of product quality
• B) Potential buyers being favorably attracted by odd pricing
• C) Prestige orientation of potential buyers
• D) Expected consumption rates of potential buyers

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Definitions:

Depreciation Expense

An accounting method to allocate the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Residual Value

The estimated value of an asset at the end of its useful life.

Double Diminishing-Balance

A method of accelerated depreciation that computes depreciation at double the rate of the straight-line method.

Carrying Amount

The book value of assets or liabilities as recorded in the financial statements, after accounting for depreciation, amortization, or impairment.