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In a free market economic system, the lack of government control and regulation means that businesses find it easy to take advantage of customers by offering poor-quality products at high prices.
Net Price Method
An accounting method that records purchases at the net price, after deducting any discounts, rather than recording them at the gross price.
Catalog Price
The listed price of goods or services in a catalog, before any discounts or adjustments.
Perpetual Inventory System
An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.
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