Generally Accepted Accounting Principles (GAAP)are Measurement Rules for

question 94

Multiple Choice

Generally accepted accounting principles (GAAP) are measurement rules for

• A) managerial accounting.
• B) financial accounting.
• C) tax accounting.
• D) determining the market rate of return on a company's stock.

---

Definitions:

Excess Capacity

Plant resources that are underused when imperfectly competitive firms produce less output than that associated with achieving minimum average total cost.

Product Differentiation

A marketing strategy that businesses use to distinguish their products or services from those of competitors.

Competitive Element

A factor that distinguishes a company in the marketplace, often related to quality, price, or innovation, aiding in achieving a competitive advantage.

Elastic Demand

A situation in which the quantity demanded of a product or service changes significantly in response to a change in price.