_____ Occurs When a Company Prices a Product a Few

question 95

Multiple Choice

_____ occurs when a company prices a product a few cents or a few dollars below the next dollar amount.

• A)Demand backward pricing
• B)Cost-plus pricing
• C)Forward pricing
• D)Odd-even pricing
• E)Prestige pricing

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Definitions:

Perpetual Inventory System

This inventory accounting technique instantly logs the acquisition or sale of inventory by utilizing computerized point-of-sale systems along with enterprise asset management software.

LIFO Inventory

An inventory valuation method (Last In, First Out) where the most recently produced or acquired items are recorded as sold first.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including direct materials and labor costs.

Perpetual Inventory System

An inventory management system where updates to inventory records are made immediately following each transaction, giving a continuous, real-time account of stock levels.