Skimming Pricing Refers to

question 210

Multiple Choice

Skimming pricing refers to

• A)setting the lowest initial price possible when introducing a new or innovative product in order to "skim" sales from competitors.
• B)setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product.
• C)setting a low initial price on a new product to appeal immediately to the mass market.
• D)the practice of replacing promotional allowances with higher manufacturer list prices.
• E)setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

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Definitions:

Perpetual Inventory System

An inventory accounting system where updates are made continuously as transactions occur, reflecting the real-time quantity of inventory on hand.

Cost Of Goods Sold

Costs pertaining directly to the crafting of goods a business sells, covering both labor and material expenses.

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of technology, ensuring continuous updating of inventory and cost of goods sold data.

Freight Costs

Expenses incurred by a company to ship its products to customers, usually varying based on distance and weight.