ConAgra Foods Decided Its Prices Had Risen Too High, So

question 16

Multiple Choice

ConAgra Foods decided its prices had risen too high, so it determined to set a lower price for its products. To make the new price level profitable, ConAgra cut $250 million in costs. What application of cost estimation did this represent?

• A) target costing
• B) experience-curve pricing
• C) ceiling pricing
• D) the learning curve
• E) promotional price elasticities

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Definitions:

Symbolic Notation

A system of symbols used to represent numbers, quantities, tones, or values in a concise way.

Atomic Statements

Basic, indivisible propositions in logical expressions, conveying a primary idea without further subdivision.

Main Components

Essential parts or elements that constitute the whole of something.

Connectives

Logical operators that connect propositions in propositional logic to form complex sentences, such as AND, OR, NOT, IF...THEN.