A Company That Intends to Maintain Low- End Pricing Policies

question 114

Multiple Choice

A company that intends to maintain low- end pricing policies to make the market unattractive for its competitors is using which of the following pricing objectives in its price planning?

• A)break- even
• B)competitive effect
• C)customer satisfaction
• D)profit
• E)sales share

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Definitions:

Special Journal

A journal used in accounting to record transactions of a similar type.

General Journal

A primary accounting journal where all types of transactions are initially recorded before being posted to specific accounts in the ledger.

Subsidiary Ledger

A detailed ledger that provides a breakdown of individual transactions affecting a control account in the general ledger, such as accounts receivable or accounts payable.

General Ledger

The master set of accounts that summarize all transactions occurring within an entity, serving as the main accounting record.