When a Chain Store Sells Certain Products Below Cost to Attract

question 125

True/False

When a chain store sells certain products below cost to attract customers, it is practicing a loss-leader price tactic.

---

Definitions:

Replenished

The process of filling up or restoring a stock or supply of something to its previous level or condition.

Every Day

A term denoting something that occurs regularly each day; however, in a financial or business context, it might refer to daily operations or tasks but this usage is not specific.

Petty Cash Fund

A small amount of cash kept on hand in a business for covering minor, routine expenses without issuing checks or electronic payments.

Journal Entry

A record in accounting that represents a transaction where there is at least one debit and one credit in the company's accounts.