The Steps in Customer Oriented Pricing Are Beneficial in That

question 8

Multiple Choice

The steps in customer oriented pricing are beneficial in that they:

• A)help distinguish between "carriage trade" and "bargain basement" customers
• B)serve as a decision-making framework for pricing in the high-tech environment
• C)allow the marketer to make a quick and easy pricing decision
• D)provide the marketer with a greater understanding of the customer's cost limitation
• E)ensure profitability based on cost versus price

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Definitions:

Bad Debts Expense

The cost associated with accounts receivable that a company is unable to collect, considered an expense on the income statement.

Note Receivable

A financial asset representing a promise to receive a specific amount of money in the future, often with interest.

Receipt

A written acknowledgment that something of value has been transferred from one party to another.

Factoring Fee

The cost charged by a third party to a business for providing factoring services—financing based on the business's receivables.