________ Involves Taking Advantage of the Fact That Consumers Do

question 441

Multiple Choice

________ involves taking advantage of the fact that consumers do not always respond rationally to stated prices.

• A) Price differentiation
• B) Penetration pricing
• C) Psychological pricing
• D) Price skimming

---

Definitions:

Equivalent Units

A concept used in process costing to convert partially completed units into a number of equivalent fully completed units.

Conversion Costs

Costs associated with converting raw materials into finished goods, typically comprising labor and overhead expenses.

Materials Costs

Represents the expense incurred from acquiring raw materials used in the production of goods or services.

Process Costing

A costing method used in manufacturing, where costs are allocated to batches or processes, suitable for homogeneous products.