Dynamic Pricing

question 37

Multiple Choice

Dynamic pricing:

• A) refers to pricing that shifts over time based on conditions associated with product supply and demand.
• B) refers to pricing that is always a notch higher than competition.
• C) refers to pricing strategies that focuses on consistency even if environmental conditions fluctuate wildly.
• D) is also known as the bargaining power of customers.
• E) refers to pricing that is always a notch below competition.

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Definitions:

Operating Cycle

The amount of time it takes for a company to purchase inventory, sell it, and convert the sales back into cash.

Interest Expense

The cost incurred by an entity for borrowed funds, representing interest payments made or accrued on outstanding debts.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net income or loss.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.