Pricing Objectives Should Be Explicitly Stated Because

question 250

Multiple Choice

Pricing objectives should be explicitly stated because:

• A) they have a direct effect on pricing policies as well as price setting methods.
• B) they are signals given to competing firms.
• C) they form the basis of shareholder expectations about a firm's prospects.
• D) it is required by law.
• E) they are signals given to consumers.

---

Definitions:

Straight-line Method

A method of calculating depreciation for an asset that spreads the cost evenly over its useful life.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset over its useful life, reducing its book value.

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting what it could be sold for or scrapped for parts.

Journal Entries

Journal entries are the basic means of recording financial transactions in the accounting system, consisting of debits and credits.