David Likes New Balance Running Shoes

question 17

Multiple Choice

David likes New Balance running shoes.However,when he stopped by the Foot Locker to buy a new pair of running shoes he notice that Nike had a new pair of running shoes that cost $350.To David the higher price of the Nike shoe indicated that it would be a better pair of running shoes.This is an example of:

• A) premium pricing
• B) price lining
• C) prestige pricing
• D) exclusive pricing
• E) selective pricing

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in a net profit or loss.

Budgeted Amounts

Estimated financial figures planned for a certain period, including revenues and expenses.