When Establishing Product-Line Pricing, the Price Differentials Between Items in the Line

question 62

Multiple Choice

When establishing product-line pricing, the price differentials between items in the line should make sense to customers and reflect differences in terms of the

• A) perceived value of the products offered.
• B) actual costs of the features offered.
• C) perceived risk.
• D) quantity discounts and price allowances offered.
• E) market segments targeted.

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Definitions:

Finance Charges

The cost of borrowing money, including interest and other fees, that a lender charges a borrower for the use of funds.

Accounts Receivable Period

The average number of days it takes a company to collect payment after a sale has been made.

Controller

A senior financial officer responsible for managing a company's accounting operations, including the production of periodic financial reports, maintenance of accounting records, and a comprehensive set of controls and budgets.

Accounts Receivable Balance

The cumulative sum of money that a company's customers owe for products or services that have been provided but remain unpaid.