Aproduct that represents a clear technological advance over competing products can generally command a high price. because technological advances tend to be quickly surpassed and companies want to make large profits while they still can, many companies charge the maximum possible price for such a product. but large profits on the new product will give competitors a strong incentive to quickly match the new product's capabilities. consequently, the strategy to maximize overall profit from a new product is to charge less than the greatest possible price.
in the argument above, the two portions in boldface play which of the following roles?
(a) the first is a consideration that has been raised to argue that a certain strategy is counterproductive; the second presents that strategy.
(b) the first is a consideration raised to support the strategy that the argument recommends; the second presents that strategy.
(c) the first is a consideration raised to explain the appeal of a certain strategy; the second presents that strategy.
(d) the first is an assumption, rejected by the argument, that has been used to justify a course of action; the second presents that course of action.
(e) the first is a consideration that has been used to justify pursuing a goal that the argument rejects; the second presents a course of action that has been adopted in pursuit of that goal.

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar.spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements.cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery.rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer.gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life.esquire company provides financial statements to external users every three years.