The Strategy of Setting Prices at Uneven Amounts That Are

question 73

Multiple Choice

The strategy of setting prices at uneven amounts that are slightly below whole-dollar amount is called _____.

• A) penetration pricing
• B) price skimming
• C) sample pricing
• D) introductory pricing
• E) odd-number pricing

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Definitions:

Break-Even Point

The point at which total revenues equal total costs, resulting in no profit but no loss.

Batch Cost

The total cost associated with producing a set or batch of goods.

Activity-Based Costing Systems

Accounting systems that assign costs to products or services based on the activities they require, aiming for more accurate cost information.

Batch Costs

Expenses associated with processing a batch of products, including labor, materials, and overhead, used to calculate per unit costs.