A Dynamic Pricing Policy Refers to

question 181

Multiple Choice

A dynamic pricing policy refers to

• A) setting the price of a line of products at a number of different specific pricing points.
• B) setting the prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item.
• C) deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.
• D) setting different prices for products and services in real time in response to supply and demand conditions.
• E) adding a fixed percentage to the cost of all items in a specific product class.

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Definitions:

Blending Department

A production department focused on combining various raw materials or components into a final product in a consistent and homogeneous manner.

Weighted-Average Method

An inventory costing method that averages out all costs of inventory available for sale during the period.

Process Costing System

An accounting method used where similar goods are produced in a continuous process, distributing costs over the units produced, making it easier to ascertain per unit cost.

Weighted-Average Method

A method of inventory costing that assigns a weighted average cost to each item in inventory, used in both perpetual and periodic inventory systems.