Reductions in Unit Costs for a Larger Order Are Referred

question 20

Multiple Choice

Reductions in unit costs for a larger order are referred to as

• A)promotional allowances.
• B)quantity discounts.
• C)one-price policy prices.
• D)penetration prices.
• E)size of order allowances.

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Definitions:

Subsidiary Acquired

A business entity whose control is obtained by another entity (parent company) through the acquisition of its majority voting stock.

Financing Cash Flows

Cash flows associated with the raising of capital and repayment of borrowings, including issuing and repurchasing shares, and payment of dividends.

Subsidiaries Acquired

Refers to companies that have been bought and are now controlled by a parent company, becoming part of a larger corporate family.