The Idea of Pricing Based on Anticipated Costs Rather Than

question 54

Multiple Choice

The idea of pricing based on anticipated costs rather than current costs is called:

• A)Realizing full scenario analysis rather than benchmarking
• B)Anticipatory pricing
• C)Full pricing rather than penetration pricing
• D)Penetration pricing rather than skimming

---

Definitions:

Principle of Exceptions

A management principle focusing on identifying and addressing areas that significantly deviate from the norm or expected results, often utilizing reporting and analysis.

Variances

Differences between planned amounts and actual amounts incurred in operations, budgets, or financial projections.

Standard Costs

Preset costs for the manufacturing or production of goods under normal conditions, used for budgeting and measuring performance.

Standard Costs

Predetermined costs for products or services, used as target costs to compare with actual costs for performance analysis and financial planning.