Which of the Following Is True of Product Line Pricing

question 57

Multiple Choice

Which of the following is true of product line pricing?

• A) The price steps take cost differences between products in the line into account.
• B) The pricing strategy cannot be used by companies in developed countries.
• C) The price steps do not account for the prices of similar products from competitors.
• D) The pricing strategy involves overpricing products so that they appeal to the elite.
• E) The customer's perception of the value of different features is considered irrelevant.

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Definitions:

Invested Assets

Assets that are acquired for the purpose of generating income or appreciating in value, such as stocks, bonds, and real estate.

Operating Income

This is the income earned from normal business operations, excluding revenue from investments and other non-operational income.

Investment Turnover

A measure of a company’s efficiency in using its assets to generate sales or revenue, indicating how quickly investments are converted into income.

Profit Margins

A financial metric that assesses the percentage of profit made from sales after all expenses have been deducted.