White Sands Heavy Equipment Co

question 233

Multiple Choice

White Sands Heavy Equipment Co. produces industrial equipment that it sells through its national sales force. Its sales reps often must negotiate with customers to match the low prices of foreign competitors. Apparently, the firm has

• A) an "F.O.B.-Seller's Factory" price policy.
• B) been violating the Robinson-Patman act.
• C) a skimming price policy.
• D) a status quo pricing objective.
• E) a flexible-price policy.

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Definitions:

Credit Sales

Transactions where goods or services are sold and payment is deferred to a future date.

Budgeted Sales

Projected sales revenue, often part of a company’s financial planning process to estimate future income from sales.

Cash Disbursements

Outflows of cash for expenses, investments, and other payments made by a business.

Materials Purchases

The acquisition of raw materials or supplies required for the production of goods or provision of services.