A Receivable Is Recognized

question 68

Multiple Choice

A receivable is recognized

• A)when the sales effort is substantially complete.
• B)regardless of collection risk.
• C)only when payment has been received.
• D)when a service is performed.

---

Definitions:

Overpricing

Setting the price of a product or service higher than its perceived market value or cost justification, potentially leading to reduced sales or customer dissatisfaction.

Target-Return Pricing

A pricing strategy where the price is set to achieve a specified return on investment or cost.

Creativity in Pricing

The application of innovative and strategic approaches to setting prices with the aim of optimizing profitability and market share.

Markup

The amount added to the cost of a product in setting the final price. It can be based on selling price or on cost.