Price Advertisements Should Never

question 124

Multiple Choice

Price advertisements should never

• A) include "puffery."
• B) deceive customers to the point of doing harm.
• C) include the MSRP.
• D) use advertising allowances to increase sales promotion.
• E) use price skimming after using price penetration.

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Definitions:

Sales

The revenue earned from selling goods or services to customers.

Selling and Administrative Expense Budget

An estimation of the costs related to sales and administrative activities for a specific period, used for planning and control.

Direct Materials

Raw materials that can be directly associated with the production of specific goods or services.

Direct Labor

The wages and benefits paid for labor that is directly involved in the production of goods or the provision of services.