The Chief Financial Officer (CFO)of an Automotive Manufacturer Is Reviewing

question 118

Multiple Choice

The chief financial officer (CFO) of an automotive manufacturer is reviewing the revenue earned from the sale of all-terrain vehicles in South America.Because the selling price of the vehicles has been changed frequently,the CFO wanted to analyze the impact of these changes particularly during the rainy season.Which global pricing strategy is being used to price these vehicles? ​

• A)​dual
• B)​standard
• C)​transfer
• D)​cannibalization
• E)​market-differentiated

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Definitions:

Mutual Agency

A principle in partnership where each partner has the authority to bind the partnership in contracts and agreements, affecting all partners.

Articles of Partnership

A document that formalizes an agreement between parties to enter into a business partnership, outlining the rights, responsibilities, and capital contributions of each partner.

Profit and Loss Ratio

Typically refers to the profit margin, which measures the efficiency of a company in generating profits from its operations, calculated as net income divided by revenue.

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, preparing the books for the next period.