Why Is Markup Pricing Most Likely Popular

question 132

Multiple Choice

Why is markup pricing most likely popular?

• A) Sellers are more certain about demand than about costs.
• B) Markup pricing tends to maximize market competition.
• C) Markup pricing affords buyers greater bargaining power.
• D) Sellers do not need to make frequent adjustments as demand changes.
• E) Markup pricing is designed to set prices to break even on the costs of making and marketing a product.

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Definitions:

Post-closing Trial Balance

A financial statement prepared after all adjusting and closing entries are made, showing account balances ready for the next period.

Notes Payable

Written promises to pay a specific sum of money on a certain date or dates, classified as a liability on the balance sheet.

Service Revenue

Income earned by a company for services rendered to clients or customers.

Unearned Service Revenue

Refers to the money received by a company for services it has yet to render.