When Pepsi Came Out with Pepsi Blue and Priced It

question 104

Multiple Choice

When Pepsi came out with Pepsi Blue and priced it at half price to attract buyers,Pepsi was using ________.

• A)marketing-skimming pricing
• B)market-penetration pricing
• C)new-product pricing
• D)discount pricing
• E)promotional allowances

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Definitions:

Incurred

This term refers to the recognition of costs or expenses in accounting when a company commits to them through its operations, regardless of when payment is made.

Wages Payable

Represents the total amount of wages earned by employees that have not yet been paid by the employer.

Wages Expense

The total cost incurred by a company for the payment of wages to its employees during a specific period.

Adjusting Entry

Financial records prepared at the close of an accounting timeframe to attribute profits and outlays to the specific period in which they happened.