A Business Using Price Lining Is Doing Which of the Following

question 115

Multiple Choice

A business using price lining is doing which of the following?

• A)trying to recoup its research and development costs for a new product
• B)using price points to determine its pricing strategy
• C)engaging in potentially unethical pricing
• D)trying to avoid the use of psychological pricing,which may be negatively received by customers
• E)attempting to attain a large market share before any competitors can enter the marketplace

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Definitions:

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, clearing the temporary accounts for the next period.

Pre-closing Trial Balance

A listing of all active ledger accounts and their balances after adjusting entries are made but before closing entries, to verify the equality of debits and credits.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare the company's books for the next period.

Dividends Account

An account used in bookkeeping that tracks dividends declared by a company to be paid out to its shareholders.