Price Lining

question 107

Multiple Choice

Price lining:

• A) is quite similar to prestige pricing.
• B) can simplify both buying and selling.
• C) tends to reduce turnover rates.
• D) results in larger inventories.
• E) All of these alternatives are correct.

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Definitions:

Price Increase

An upward adjustment in the selling price of goods or services, typically in response to inflation, increased costs, or improved value.

Percentage Change

A mathematical calculation that represents the degree of change over time, expressed as a percentage.

Absorption Costing

A method of product costing that includes all manufacturing costs - both fixed and variable - in the cost of a product.

Rate Of Return

The gain or loss on an investment over a specified period, expressed as a percentage.