What Is Price Skimming

question 74

Multiple Choice

What is price skimming?

• A) The initial price is set low and kept constant.
• B) The initial price is set low and then raised.
• C) The initial price is set high and later lowered.
• D) The initial price is set high and kept constant.
• E) The initial price is set high and then raised.

---

Definitions:

Expenses

Costs incurred by a business or individual in the course of generating revenue, including operational costs and overheads.

Dividends Payable

A liability account on a company's balance sheet representing the amount of declared dividends that have not yet been paid out to shareholders.

Beginning

The starting point or initial stage of an event, process, or time period.

Operating Activities

Transactions and events related to the primary business activities, such as cash received from sales of goods or services and cash paid for inventory, that affect the cash flow of a company.