As Firms Develop Their Marketing Mix, It Is Important to Remember

question 208

Multiple Choice

As firms develop their marketing mix, it is important to remember that

• A) prices must be linked directly to the cost of production.
• B) instincts and past history are the best guides in determining price.
• C) regardless of the strategy used, prices ultimately reflect the forces of supply and demand.
• D) firms are often restricted in creating pricing strategies by relevant government rules and guidelines.

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Definitions:

Periodic Inventory System

An inventory accounting system where updates to inventory accounts occur at specific intervals, typically at the end of an accounting period.

LIFO

An inventory valuation method where the last items added to inventory are considered the first ones sold during a period of time; stands for Last-In, First-Out.

FIFO

An accounting method for inventory valuation where the first items acquired are the first ones sold, standing for First In, First Out.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency in managing stock levels.