When Dell Sells Various Laptops, It Also Preinstalls Microsoft Office

question 183

Multiple Choice

When Dell sells various laptops, it also preinstalls Microsoft Office and other software that customers order at a discount before the laptop is shipped. This is an example of

• A) price lining.
• B) product-line pricing.
• C) bundle pricing.
• D) customary pricing.
• E) prestige pricing.

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Definitions:

Straight-Line Method

A method of calculating depreciation and amortization, dividing the difference between an asset's cost and its salvage value by the number of years it is expected to be used.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Income Attributable

The portion of net income (profit) that is available to the shareholders, after accounting for dividends to preferred stockholders and other adjustments.

Noncontrolling Interest

A stake in a company that is less than 50%, implying that the holder does not have control over the company's operations.