Whether the firm uses the market-based approach or the cost-based approach for pricing decisions, the market forces must be considered. True False
Whether the firm uses the market-based approach or the cost-based approach for pricing decisions, the market forces must be considered. True False
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Whether the firm uses the market-based approach or the cost-based approach for pricing decisions, the market forces must be considered.
True
False
Expert Solution
Step 1
Introduction:
Market based approach:
For calculating the selling price of Asset firm uses market based approach.
Based on similar type of Asset value the selling price of asset is determined.
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