Why Is Markup Pricing Most Likely Popular

question 132

Multiple Choice

Why is markup pricing most likely popular?

• A) Sellers are more certain about demand than about costs.
• B) Markup pricing tends to maximize market competition.
• C) Markup pricing affords buyers greater bargaining power.
• D) Sellers do not need to make frequent adjustments as demand changes.
• E) Markup pricing is designed to set prices to break even on the costs of making and marketing a product.

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Definitions:

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on accounting principles.

Drawee

In financial terms, this is the entity upon which a cheque or draft is drawn and is responsible for paying the amount.

Financial Statement

A summarized record that shows the financial health of a business or individual, including components like balance sheets, income statements, and cash flow statements.

Normal Balance

The side (debit or credit) of an account that is typically increased, indicating whether an account increases on the left side (debit) or right side (credit).