If a Company Uses a Low-Price Strategy,the Company Should Most

question 22

Multiple Choice

If a company uses a low-price strategy,the company should most likely consider which of the following when negotiating with transactional buyers?

• A)selling at the cost of manufacturing the product to improve economies of scale
• B)eliminating features that contribute to a higher selling price
• C)increasing the number of features of the product
• D)matching competitors' prices
• E)changing branding

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Definitions:

Standard Price

The predetermined cost of acquiring a product or receiving a service under normal conditions.

Pounds

Often refers to a unit of weight used primarily in the British imperial and United States customary systems.

Materials Variance

The difference between the actual cost of materials used in production and the expected (standard) cost of those materials.

Price Variances

The difference between the actual cost of a good or service and its standard or expected cost, which can be favorable or unfavorable.