Which Product Pricing Practice Is Used by the Majority of Japanese

question 40

Multiple Choice

Which product pricing practice is used by the majority of Japanese companies in assembly-type operations (e.g.electronics and automobiles) ?

• A)Variable costs,only
• B)Fixed costs,only
• C)Full costs
• D)Absorption costs

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Definitions:

Retained Earnings

Part of shareholders' equity on a company's balance sheet, representing the amount of net income left over for the business after it has paid out dividends to its shareholders.

Control Account

An account used in the general ledger to summarize the balances of subsidiary accounts and facilitate the verification of financial information accuracy.

Customer Account Balances

The amounts owed to a company by its customers for goods or services delivered on credit.

Adjusting Entries

Entries made in the accounting records to realign the balances of accounts before financial statements are prepared.