Promotion Can Help Keep Prices Lower Because

question 122

Multiple Choice

Promotion can help keep prices lower because:

• A) demand for the product does not increase.
• B) promotion of prices intensifies price competition.
• C) promotion discourages materialism.
• D) promotion tends to reduce consumers' price sensitivity.
• E) promotion tends to stabilize a product's price elasticity of demand.

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Definitions:

Hourly Wage Rate

The amount of money paid for each hour of work, commonly used to compensate hourly employees.

Labor Variances

Differences between the actual labor costs incurred and the standard labor costs expected for the work performed.

Standard Labor Rate

A predetermined cost per labor hour, used in budgeting and cost control for planning and evaluating labor expenses.

Actual Hours Incurred

The real number of hours worked or used in the completion of a task or production of a good, as opposed to the estimated hours.