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Management · Q356

Management Accounting

Graduate and Post Graduate · Management · question 356

Q356

Companies that perform in competitive markets using pricing approach are known as

A.
independent revenue approach
B.
market based approach
Answer
C.
dependent revenue approach
D.
cost based approach

Answer: Option B

Solution

Answer: Option B
Solution:
Companies that perform in competitive markets using pricing approach are known as market based approach. In the Market-Based Approach, the value of an asset is determined by comparing it with the market prices of recently sold similar sized assets in recent time period like a quarter.