A Company That Raises Its Prices Is Most at Risk

question 75

Multiple Choice

A company that raises its prices is most at risk of being accused of which of the following?

• A) high-low pricing
• B) price gouging
• C) predatory pricing
• D) price discrimination
• E) retail price maintenance

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Definitions:

Advertising Expense

The cost incurred to promote products, services, or the overall brand, which is often reported on the income statement.

Period Costs

Expenses that are not directly tied to the production of goods or services, such as selling, general, and administrative expenses.

Selling

The process of exchanging a product or service for money; involves promoting and delivering goods to customers.

Administrative

Related to the activities that manage, organize, and run an organization including tasks such as budgeting, staffing, and directing resources.