Examlex

Solved

Novice Telecom Is a Manufacturer of Cell Phones

question 92

Multiple Choice

Novice Telecom is a manufacturer of cell phones.The company is planning to launch a new model of smart phone and the pre-launch marketing has created much hype in the market.In order to cash in on the hype,the company charges a high price during the initial stages of the product's launch.Identify the pricing strategy this company is using.


Definitions:

Activity-Based Costing

A method of accounting that recognizes and allocates expenses to overhead operations, before distributing those expenses to the products.

General Factory

Expenses related to the general operation of a manufacturing plant, not directly tied to specific units of production.

Activity-Based Costing

A costing method that assigns costs to products based on the activities needed to produce those products, aiming to provide more accurate product costing.

Activity-Based Costing

A costing methodology that identifies activities in an organization and assigns costs to products and services according to their consumption of those activities.

Related Questions