Multiple choice

How to reduce the risk of Death Spiral in Accounting?

  1. By increasing price

  2. By decreasing price

  3. By using of activity based costing

  4. By keeping the stock dead for sometime

  5. None of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Death spiral term is taken from cost accounting. It is bad situation of company when company's sale decreases rapidly.  The cost of each of these activities will be assigned only to the products that demanded the activities.