When Lucile Visited a Stationery Store to Buy Tape,she Noticed

question 66

Multiple Choice

When Lucile visited a stationery store to buy tape,she noticed that each roll of tape was priced at $1.99.In fact,most of the prices at the store were set a few dollars or a few cents below a round number.This indicates that the manager of the store is using a(n) _____.

• A)odd-even pricing strategy
• B)bundle pricing strategy
• C)prestige pricing strategy
• D)premium pricing strategy

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Definitions:

Prepaid Expenses

Costs paid in advance of their use, such as insurance or rent, which are recorded as assets on a balance sheet until they are actually incurred.

Recorded

The process of documenting financial transactions in the accounting records of a business.

Adjusted Trial Balance

A trial balance taken after adjustments have been made, used for preparing financial statements.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received.