If Macy's Department Store Managers Looked at Dillard's Department Store

question 122

Multiple Choice

If Macy's department store managers looked at Dillard's department store prices for identical national brands and, based on that information, decided to advertise a sale on those products, they would be exercising which pricing method?

• A) Competition-based
• B) Demand-based
• C) Cost-based
• D) Premium
• E) Penetration

---

Definitions:

Depreciation Expenses

The allocated cost of an asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Accounts Receivable

Funds that clients or customers owe to a company for products or services delivered on credit.

Accounts Payable

An accounting recording of amounts a company owes to suppliers for goods or services purchased on credit.

Net Income

The amount of money remaining from revenues after all the firm's expenses are subtracted.