Which of the Following Is the First Step in Setting

question 145

Multiple Choice

Which of the following is the first step in setting a pricing policy?

• A) selecting the pricing objective
• B) selecting a pricing method
• C) determining demand
• D) estimating cost
• E) analyzing competitors' costs, prices, and offers

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Definitions:

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Fair Value

An estimate of the price at which an asset could be bought or sold in a current transaction between willing parties, not in a forced or liquidation sale.

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock rather than cash.