For Which of the Following Situations Would a Price Skimming

question 21

Multiple Choice

For which of the following situations would a price skimming strategy be most appropriate?

• A)the addition of a new comic book series with an obviously gay hero
• B)the introduction of a new brand of bottled water
• C)the elimination of demand for low-wattage light bulbs
• D)the introduction of a unique, roomy automobile model that has extremely low energy and fuel costs

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Definitions:

Accounting Systems

Procedures and systems used by a business to keep track of its financial transactions and prepare financial statements.

Double-Entry

An accounting method of recording transactions that provides an equality of debits and credits. Using the double-entry.

Single-Entry

A simple bookkeeping or accounting method where transactions are recorded only once, either as income or expense.

Pegboard

A manual bookkeeping system that uses a lightweight board with pegs on the left side and often on the top and right side too. Components of the pegboard system include a physician’s day sheet, transactions slip, patient ledger card, and deposit slip.