Which of the Following Is True About Competitive Pricing

question 62

Multiple Choice

Which of the following is true about competitive pricing?

• A) It is set by covering costs and then adding some margin.
• B) It is set by covering costs only.
• C) It is set by figuring out just how much a customer is willing to pay and pricing near that mark.
• D) It is at a medium level, somewhere in between extremes, using competitors' prices as a starting point, and adjusting from there.

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Definitions:

Special Ledger

A set of subsidiary accounts or a separate bookkeeping system that provides detailed information in addition to the general ledger.

Accounting Systems

Systems designed to record, process, and report financial transactions systematically and accurately for a business entity.

Journal Entry

An accounting record that documents a business transaction in the ledger, specifying the accounts affected and the amounts.

Posted Twice

Accidentally recording a financial transaction or entry in the accounting records more than once, which can lead to discrepancies and require correction.