The New Age Gallery Has Three Admission Prices for Students

question 96

Multiple Choice

The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ________.

• A) psychological pricing
• B) product-form pricing
• C) customer-segmented pricing
• D) captive product pricing
• E) by-product pricing

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Definitions:

Milling Machine

A machine tool used to machine solid materials by rotating a cutting tool to remove material.

Constrained Resource

A limiting factor in production or project management that restricts output, such as limited materials, labor, or machine capacity.

Profitability

Refers to a company's ability to generate earnings over its costs and expenses within a specified time frame.

Absorption Costing

A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed overhead—in the cost of a product.