Which Pricing Strategy Has the Advantage of Being Simple to Calculate

question 104

Multiple Choice

Which pricing strategy has the advantage of being simple to calculate but has the disadvantage of ignoring demand and competitive conditions?

• A)gray marketing
• B)skimming
• C)penetration
• D)market holding
• E)cost-based

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Definitions:

Long-term Assets

Assets intended for use over an extended period, typically exceeding one year, such as buildings, machinery, or land.

Investing Activity

Transactions involving the acquisition or sale of long-term assets and other investments not included in cash equivalents.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the company.

Cash Dividends Payable

A liability account that records the amount of cash dividends that a company has declared but has not yet paid to shareholders.