What Results Can Be Expected If Hydro Supreme Ltd

question 129

Multiple Choice

What results can be expected if Hydro Supreme Ltd.uses a price skimming strategy to price its new revolutionary irrigation systems?

• A)Large profits may be earned on each sale.
• B)It may generate a lot of consumer interest,but very low profits.
• C)It permits the company to gain entrance into a market and then later adjust the price to a more realistic figure.
• D)It generates a lot of consumer interest.
• E)It will increase Hydro Supreme's market share.

---

Definitions:

Activities Performed

The actions or operations carried out by an individual or organization in pursuit of certain objectives.

Equivalent Units

A concept used in cost accounting to express the amount of work done on incomplete products in terms of fully completed units of output.

Fully Completed

A status indicating that a task, project, or product has been finished with all necessary requirements met.

JIT

Just-In-Time, an inventory management methodology aimed at reducing waste and improving efficiency by receiving goods only as they are needed in the production process.