Dynamic pricing is used to:
a. implement bait pricing to get more loyal customers.
b. perform price discrimination among its customers.
c. raise prices to maximize a company's revenues.
d. attain price equilibrium.
ANSWER: c
Dynamic pricing is a strategy whereby prices are adjusted over time to maximize a company's revenues. When competitive pressures are high, a company must know when it can raise prices to maximize its revenues.
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The law firm of Smith, Brown, and Jones has just held a meeting in which the three partners decided that all fees charged by each of them will be $500 per hour with no exceptions. They also set nonnegotiable fees for such things as preparation of wills, real estate settlements, and other types of standard cases. In this scenario, Smith, Brown, and Jones
A. are guilty of price discrimination under the Robinson-Patman Act. B. are guilty of vertical price-fixing under the Sherman Act. C. have broken no laws. D. are guilty of horizontal price-fixing under the Sherman Act.
PCAOB Auditing Standard 5 does not identify which of the following situations as one in which the auditor will modify the audit report on ICFR effectiveness?
a. When there is a restriction on the scope of the engagement. b. When there is other information contained in management's annual report on ICFR. c. When elements of management's annual report on internal control are incomplete or improperly presented. d. When the annual report includes a copy of the annual certification pursuant to Section 302 of the Sarbanes-Oxley Act.
Which telephone interview method involves phoning a sample of respondents and asking them a series of questions with the interviewer using a paper questionnaire to record the responses with a pencil?
A) traditional telephone B) in-home C) computer-assisted telephone interviewing (CATI) D) Internet
A retailer can most easily improve its collection period by a significant degree by _____
a. switching to vendors which grant liberal credit terms b. raising its initial markup c. encouraging retail credit customers to use bank and commercial credit cards d. using point-of-sale systems