________ Is a Business Strategy of Offering a Basic Version

question 55

Multiple Choice

________ is a business strategy of offering a basic version of a product free of charge and then charging for upgraded versions of the product.

• A) Prestige pricing
• B) Freemium
• C) Price segmentation
• D) Reverse marketing
• E) Dynamic marketing

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor, such as utilities, depreciation, and maintenance of factory equipment.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or services.

Manufacturing Cost

All expenses directly related to the production of goods, including raw materials, labor, and factory overhead.

Machine-Hours

A measure of production time, indicating the total hours that machines are operating in the manufacturing process.