________ Pricing Is a Technique That Involves Marking Down the Normal

question 114

Multiple Choice

________ pricing is a technique that involves marking down the normal price of a popular item in an attempt to attract more customers who make incidental purchases of other items at regular prices.

• A)Leader
• B)Markup
• C)Markdown
• D)Multiple unit

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Definitions:

Purchase Discounts

Reductions in the purchase price of goods, services, or assets, usually offered as an incentive for prompt payment.

Sales Returns and Allowances

A reduction in sales revenue due to returned goods or allowances made for damaged or unsatisfactory products.

Freight-In

Costs associated with transporting raw materials or goods into a company from suppliers, considered part of the cost of purchasing inventory.

Net Purchases

The total cost of purchases made by a company after deducting any returns, allowances, and discounts.