You Have Been Asked to Try a Firm's New Line

question 147

Multiple Choice

You have been asked to try a firm's new line of potato chips at no cost to you.Now you have been approached by the firm and asked if you would pay $1.00 per bag for these chips (regular price $1.99) or if you would prefer your regular brand of potato chips.You choose your favorite brand of chips instead.The firm then offers you the option of purchasing their chips for $.90 per bag.You are participating in a ________.

• A) commercialization of a new product
• B) sales-wave research study
• C) controlled test market
• D) simulated test market
• E) test market

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Definitions:

Bad Debt Expense

An estimated expense that represents the amount of receivables that a company does not expect to collect due to customers' inability to pay.

Credit Balance

This occurs when the total credits in an account exceed the total debits, often indicating money owed to a customer or client.

Adjusting Entry

An amended bookkeeping entry made to rectify or allocate transactions to the appropriate accounting period or ensure that revenues and expenses are recorded in the period they occur.

Doubtful Accounts

Accounts receivable that a company believes might not be collected due to credit risk.