When a Manufacturer of Digital Video Recorders Initially Charged a High

question 58

Multiple Choice

When a manufacturer of digital video recorders initially charged a high price but later dropped the price after others entered the market,it was practicing which pricing method?

• A)Cost-based pricing
• B)Target costing
• C)Skimming pricing
• D)Penetration pricing

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Definitions:

Collaborative Relationships

Collaborative relationships refer to partnerships or alliances between businesses or individuals that aim to achieve mutual goals or enhance operational efficiency through shared resources or knowledge.

Inventory-Related Costs

Inventory-Related Costs are expenses associated with holding and managing inventory, including storage, insurance, and loss due to obsolescence.

Strategic Focus

The prioritization of resources and activities towards the key areas that will achieve the most significant impact on an organization's objectives and competitive advantage.

Customer Profitability

An analysis used to determine the profitability of a firm’s customers by attributing profits and costs to each customer individually.