Motel Plus,a Motel Chain,utilizes a Pricing Strategy of Maintaining Continuous

question 39

Multiple Choice

Motel Plus,a motel chain,utilizes a pricing strategy of maintaining continuous minimum prices rather than relying on sales.This strategy is an example of _____ pricing.

• A)skimming
• B)psychological
• C)everyday low
• D)penetration

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Definitions:

Overhead Applied

Overhead applied refers to the allocation of overhead costs to specific jobs or production units based on a predetermined rate or basis.

Job-order Costing System

A costing method that assigns costs to specific batches or lots of products, often tailor-made for customers.

Overhead Cost

Overhead cost refers to ongoing business expenses not directly tied to creating a product or service, such as rent, utilities, and insurance.

Work in Process

Represents goods that are in the process of being manufactured but are not yet complete.