Answer:
unique selling propositions
The correct question should be:
Companies facing the challenge of setting prices for the first time can choose between two board strategies; marketing-penetration pricing and _______ pricing.
Answer: Market Skimming pricing.
Explanation:
A company with a product new to the market can either choose to use the market penetration pricing or the market skimming pricing.
The market penetration pricing works best in a market with a lot of competition. The penetration pricing is a kind of pricing a company uses where the price of it's Products are set to be very low to attract price-sensitive consumers and still make profit.
The market skimming pricing on the other hand is a price setting method where a high entry price is set for a new product and then subsequently reduced with increase in market competition.
To determine the answer to this, let us first determine the
interest using the formula:
Interest = Principal amount * Interest rate * Number of
months / 12
September to December would be 4 months, therefore:
Interest = $50,000 * 0.06 * 4/12
Interest = $1,000
Therefore the adjusting entry should be:
debit to Interest Expense of $1,000
Answer: A- Revenue under the installment sales method, as soon as it has assisted Steffi in setting up the store.
Explanation: The installment sales method is a method of accounting accepted under the US Gaap. It is a method were revenue is recorded in instalments and the cost of sales and gross profit recognised upon the collection of the installment revenue.
It is a method of accounting used mainly by construction companies whose revenue are not received once but in installments.
