Which Pricing Strategy Has the Advantage of Being Simple to Calculate

question 104

Multiple Choice

Which pricing strategy has the advantage of being simple to calculate but has the disadvantage of ignoring demand and competitive conditions?

• A)gray marketing
• B)skimming
• C)penetration
• D)market holding
• E)cost-based

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Definitions:

Standard Price

A predetermined cost that companies use to budget and evaluate the performance of actual costs.

Standard Quantity

The established amount of materials or inputs expected to be used in the production of a good or service.

Total Manufacturing Cost Variance

The difference between total standard costs and total actual costs for the units produced.

Standard Costs

Predetermined costs for the manufacturing of products or services, used as target costs or bases for variance analysis.