Which of the Following Would Be Used in Setting the Price

question 120

Multiple Choice

Which of the following would be used in setting the price of a new product if considerable competition is expected?

• A) Psychological pricing
• B) Penetration pricing
• C) Odd-even pricing
• D) Price skimming
• E) Prestige pricing

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Definitions:

Special Item

Unusual or infrequent gains or losses in a company’s financial statements, which are not expected to recur in the foreseeable future.

Discontinued Operations

Components of a business that have been disposed of or are classified as held for sale, and will not be continuing operations in the future.

Future Cash Flows

Estimated future financial earnings or expenses, which are used in various financial analyses to determine investment potential or project value.

Income Items

Generally refer to all the items that contribute to a company's net income, including revenue from sales, services, and other sources.