Which of the Following Describes the Products and Services of Companies

question 191

Multiple Choice

Which of the following describes the products and services of companies that are price-setters?

• A) They are priced by managers using a target-costing emphasis.
• B) They tend to be unique.
• C) They tend to have a lot of competitors.
• D) They tend to be commodities.

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Definitions:

Marking To Market

This refers to the daily adjustment of accounts to reflect profits and losses in the value of securities.

Option Contract

A financial contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.

Derivative Security

A financial instrument whose value is based on the value of another asset.

Economic Exposure

Long-term financial risk arising from permanent changes in prices or other economic fundamentals.