Using ________ Pricing, Companies Are Able to Turn Their Trash

question 107

Multiple Choice

Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive.

• A) product bundle
• B) optional product
• C) captive product
• D) by-product
• E) product line

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Definitions:

Maker

In the context of finance, a maker is typically a party that creates or executes an order, often in trading or banking environments.

Receivables Turnover Ratio

A financial ratio that measures how effectively a company uses its assets by comparing net credit sales with average accounts receivable.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for sales made on credit.

Receivables Turnover Ratio

The Receivables Turnover Ratio measures how effectively a company collects its outstanding credit, calculated by dividing net credit sales by the average accounts receivable.