The Pricing Approach Where Prices Are Set Based on What

question 13

Multiple Choice

The pricing approach where prices are set based on what competitors are charging is called the:________

• A) demand-oriented approach.
• B) value-oriented approach.
• C) competitor-oriented approach.
• D) cost-oriented approach.

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Definitions:

Accounts Receivable

Receivables from customers for goods or services that have been furnished but remain unpaid.

Net Cash

The amount of cash remaining after all cash outflows are subtracted from total cash inflows, indicating a company's liquidity position.

Indirect Method

A method used in cash flow statements to adjust net income for transactions that do not involve cash, providing a view of cash flow from operating activities.

Direct Method

A cost allocation method that assigns service department costs directly to production departments without recognizing services provided between service departments.