Generally Accepted Accounting Principles Restrict or Limit a Company's Freedom

question 35

True/False

Generally accepted accounting principles restrict or limit a company's freedom to change inventory cost flow methods from one year to the next.

---

Definitions:

Inelastic

Characterizes a condition where a change in price leads to a relatively small change in the quantity demanded or supplied.

Price Elasticity of Demand

The responsiveness of the quantity demanded of a good to a change in its price, with all other factors being held constant.

Elastic

Describes a situation where the demand for a product significantly changes in response to changes in its price.

Absolute Value

A numerical value regardless of its sign, often represented as the distance of a number from zero on the numerical scale.