When Gabriella Logs on to Dell's Website, She Sees a Notebook

question 65

Multiple Choice

When Gabriella logs on to Dell's website, she sees a notebook model priced well below $1,000. As she continues through the site to view the other options, she realizes the first one she saw was the cheapest model available, but she of course wants more features. Dell is utilizing

• A) bait and switch.
• B) price lining.
• C) captive pricing.
• D) penetration pricing.
• E) bait pricing.

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Definitions:

Inventory System

A mechanism for tracking the quantity, value, and movement of inventory through a business operation.

Periodic LIFO

An inventory valuation method applied at the end of an accounting period that assumes the last items added to inventory are the first sold.

Ending Inventory

The total value of unsold goods held by a company at the end of an accounting period.

Inventory System

Methods and procedures used to track materials, work-in-progress, and finished goods from acquisition through sale.