Grouping Product Prices into Ranges Such as Low-, Medium-, and High-Priced

question 106

Multiple Choice

Grouping product prices into ranges such as low-, medium-, and high-priced items is known as which of the following?

• A) prestige pricing
• B) odd pricing
• C) reference pricing
• D) price lining

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Definitions:

GAAP

Stands for Generally Accepted Accounting Principles, which are a common set of accounting rules and standards used in the United States for financial reporting.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is gaining global acceptance.

Deferred Taxes

Taxes applicable to income that has been accrued but not yet paid, due to differences between accounting and tax legislation.

Installment Sales

A method of sale where the buyer makes payments towards the total sale price in installments over time, while the seller recognizes revenue as payments are received.