Match Each Item with the Correct Statement Below

question 78

Multiple Choice

Match each item with the correct statement below.
-A(n) _____ is a pricing practice in which a firm raises prices and then wait to see if others follow suit.

• A)competitive bidding
• B)penetration pricing strategy
• C)list price
• D)trade discount
• E)price flexibility
• F)promotional pricing
• G)loss leader
• H)cannibalization
• I)bundle pricing
• J)odd pricing
• K)transfer price
• L)profit center
• M)skimming pricing strategy
• N)competitive pricing strategy
• O)pricing policy
• P)market price
• Q)noncumulative quantity discount
• R)step out
• S)bot
• T)cash discount

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Definitions:

FICA Taxes

Taxes imposed on both employees and employers to fund Social Security and Medicare, based on a percentage of payroll.

Federal Income Taxes

The taxes levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Operating Cycle

The average time period between purchasing or acquiring inventory and receiving cash from sales of the inventory.

Existing Current Assets

Current assets that have been on a company's balance sheet for an extended period and include cash, accounts receivable, inventory, and other short-term assets.