When Deciding on the Basis for Pricing, Marketers May Use

question 39

Multiple Choice

When deciding on the basis for pricing, marketers may use which of the following units of consumption?

• A)admission
• B)time taken
• C)completion of a task
• D)a and b
• E)all of the above

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Definitions:

Raw Materials Cost

The total expense incurred for materials that are used in the manufacturing process to produce goods.

Direct Labor Wage Rate

The amount of money paid to workers for each hour of labor.

Raw Materials Inventory

Stocks of unprocessed materials that are used in the manufacturing process to create finished goods.

Raw Material Needs

The quantity of raw materials required to meet production schedules and maintain inventory levels.