In the Context of Determining Pricing Models, Identify an Accurate

question 7

Multiple Choice

In the context of determining pricing models, identify an accurate statement about pricing a service.

• A)Unlike pricing models for products, pricing models for services do not have to account for costs of distribution or delivery.
• B)The value of a service can easily be determined based on the number of independent service providers on the market.
• C)When pricing a service, inputs such as education and experience should not be reflected in its cost.
• D)Pricing can be used as an effective tool for controlling the number of customers a service provider must handle.

Identify shipping and credit terms in merchandising transactions.

Distinguish between multiple-step and single-step income statements and their presentation of expenses.

Understand the periodic inventory system and how it records transactions.

Calculate cost of goods sold under a periodic inventory system.

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Definitions:

Present Consumption

The act of using goods and services to satisfy current needs and desires rather than saving for future use.

Self-Control Problems

Refers to the difficulty people have in sticking with earlier plans and avoiding suboptimal decisions when finally confronted with a particular decision-making situation. A manifestation of time inconsistency and potentially avoidable by using precommitments.

Time Inconsistency

The human tendency to systematically misjudge at the present time what will actually end up being desired at a future time.

Behavioral Economists

Economists who study the psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.