Which of the Following Statements Is Not Correct Regarding a "Damaged

question 32

Multiple Choice

Which of the following statements is not correct regarding a "damaged goods strategy"?

• A)A damaged good strategy is an example of "versioning".
• B)A damaged good strategy can be an example of third-degree price discrimination.
• C)A damaged good strategy can be an example of "building fences".
• D)A damaged good strategy is generally less profitable than a uniform pricing strategy for a high quality product.

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Definitions:

Cost Flow Assumption

Accounting assumptions used to calculate the cost of inventory sold and ending inventory value, such as FIFO, LIFO, or weighted average.

Reverse Order

A sequence of objects or tasks arranged in the opposite manner from which they were initially presented or executed.

Cost Flow Assumption

An accounting method that determines the value of remaining inventory and the cost of goods sold, such as FIFO or LIFO.