Setting Prices a Few Dollars or Cents Under an Even

question 91

Multiple Choice

Setting prices a few dollars or cents under an even number is referred to as

• A) odd-even pricing.
• B) prestige pricing.
• C) price lining.
• D) above-, at-, or below-market pricing.
• E) every day fair pricing.

Utilize the Equivalent Annual Annuity (EAA) method for project comparison.

Understand the impact of project cash flow timings on investment decisions under changing cost of capital.

Evaluate projects using the Profitability Index (PI) and understand its implications.

Assess the impact of non-normal cash flows on project evaluation and selection.

---

Definitions:

May

The fifth month of the year in the Gregorian calendar.

Labor Efficiency Variance

The difference between the actual labor hours used in production and the standard hours expected, multiplied by the standard labor rate.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the standard or expected wage rate, multiplied by the total hours worked.

Standard Amount

A benchmark or norm set for the quantity or cost of inputs in producing a specific product or in carrying out a process.