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Interest received would be included in the investing activities category on the statement of cash flows.
Volume Maximization
A pricing objective that involves setting prices low to encourage a greater volume of purchases; also called penetration pricing.
Penetration Pricing
A pricing strategy aimed at entering a new market by setting a low price initially to attract customers and gain market share.
Escalator Clause
A section in a contract that provides for price increases if certain, specified conditions occur.
Loss-leader Pricing
A pricing strategy where a product is sold at a loss to attract customers, with the expectation they will make additional purchases of other items at regular prices.
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