Which of the Following Is a Key Benefit of Penetration

question 135

Multiple Choice

Which of the following is a key benefit of penetration pricing?

• A) It increases traffic in retail stores by special sales on a limited number of products.
• B) Profitability is not dependent on the volume of sales.
• C) It tends to discourage competitors.
• D) Each individual sale typically yields a high profit.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby resetting the temporary accounts for the new period.

Temporary Accounts

Accounts used to track transactions within a fiscal period that are then reset to zero at the start of the next period, such as revenue and expense accounts.