Constantly Updating Prices to Reflect Changes in Supply, Demand, or Market

question 139

Short Answer

Constantly updating prices to reflect changes in supply, demand, or market conditions is a pricing strategy called ________ pricing.

---

Definitions:

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Finished Goods Inventory

The completed products that are ready to be sold but have not been sold yet.

Income

The financial gain earned or received by an individual or entity, often from employment, investments, or business operations.

GAAP

Generally Accepted Accounting Principles, which are a collection of commonly-followed accounting rules and standards for financial reporting.