The Strategy of Setting a Single Price for Two or More

question 29

Multiple Choice

The strategy of setting a single price for two or more units is known as

• A) penetration pricing.
• B) price skimming.
• C) sample pricing.
• D) multiple-unit pricing.
• E) odd pricing.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the expected (or budgeted) cost of labor based on standard rates and hours.

Labor Standards

Benchmarks or norms for the amount of labor time required to perform a certain task or produce a certain amount of goods.

Particular Product

A specific item or good that is produced and offered for sale by a business.

Labor Efficiency Variance

A measure used in budgeting and cost management to analyze the difference between the actual hours worked and the hours that should have been worked, according to standards, for the actual level of production.