A One-Price Policy Refers to

question 286

Multiple Choice

A one-price policy refers to

• A) setting different prices for products and services in real time in response to supply and demand conditions.
• B) setting the price of an entire line of products at a single specific pricing point.
• C) simultaneously setting prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item.
• D) adding a fixed percentage to the cost of all items in a specific product class.
• E) setting one price for all buyers of a product or service.

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Definitions:

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Internal Rate

Often refers to the internal rate of return (IRR), which is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Net Present Value

A financial metric used to evaluate the profitability of an investment, accounting for its time value of money.

Capital Budgeting

The process of planning significant investments in projects that have long-term implications such as the purchase of new equipment or the introduction of a new product.