Accounting Tools

DECEMBER 18, 2023

What is a Price Taker? A price taker is a business that sells such commoditized products that it must accept the prevailing market price for its products. For example, a farmer produces wheat, which is a commodity; the farmer can only sell at the prevailing market price.

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Accounting Tools

JUNE 6, 2023

Related Courses Revenue Management Revenue Recognition What is a Price Setter? A price setter is an entity that has the ability to set its own prices, because its products are sufficiently differentiated from those of competitors. Related Articles Price Taker Pricing Strategies Rate Fences Revenue Management

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Accounting Tools

APRIL 16, 2024

What is a Pocket Price? The pocket price is the list price minus discounts , rebates, promotions, free freight, and similar offers. The contribution margin of a sale transaction can be determined by subtracting the cost of goods sold from the pocket price. The cost of goods sold is $50.

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Accounting Tools

FEBRUARY 12, 2024

What is a Price War? A price war is a situation in which competitors attempt to take market share from each other by reducing their prices. Advantages of a Price War A price war can attract more customers into a market, as lower prices make the products and services being sold more attractive to a larger audience.

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