Regarding Quality, Which Statement Is Not True

question 56

Multiple Choice

Regarding quality, which statement is not true?

• A)Businesses offering premium quality goods usually have larger market share and are early entrants into their market.
• B)Quality is positively and significantly related to higher return on investment for almost all kinds of market situations.
• C)A strategy of quality improvement usually leads to increased market share but at a cost in terms of reduced short-run profits.
• D)High goods quality producers can usually excel by charging low prices.

---

Definitions:

Accelerated Depreciation

A depreciation method that allocates larger amounts of the cost of an asset to the earlier years of its useful life.

Depreciation Expense

The allocated portion of the cost of a fixed asset that is written off each year over the asset's useful life.

Straight-line Method

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Salvage Value

The projected remaining worth of an asset upon reaching the end of its serviceable duration.