A Version of Psychological Pricing Where the Numbers End in $.99

question 27

Multiple Choice

A version of psychological pricing where the numbers end in $.99 is called:

• A) the penny discount pricing
• B) undercut pricing
• C) price-lining
• D) odd number pricing

---

Definitions:

COGS

COGS, or Cost of Goods Sold, represents the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Payables Turnover Rate

An efficiency ratio that measures how quickly a company pays off its suppliers, calculated as cost of goods sold divided by average accounts payable.

Accounts Payable Balance

The total amount of short-term liabilities or obligations a company owes to its creditors or suppliers.

Sales

The total revenue generated from goods or services sold by a company during a specific period.