Which of These Is a Fundamental Purpose of Accounting Standards

question 34

Multiple Choice

Which of these is a fundamental purpose of accounting standards? Improving:
i.Accountant's ethics
ii.Social accountability
iii.Share price
iv.Resource allocation

• A)i,ii,iii,iv
• B)i,ii,
• C)iv
• D)iii

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Definitions:

Indirect Price Discrimination

A pricing strategy where different prices are charged for the same product or service in different markets or segments, not directly by customer characteristics.

Decreasing Returns

Refers to a situation in which adding more of a production factor, such as labor or capital, results in progressively smaller increases in output.

Direct Price Discrimination

A pricing strategy where a seller adjusts prices for different customers based on observable personal characteristics or willingness to pay.

Elastic Demand

A situation where the demand for a good or service greatly changes in response to changes in price.