Three Types of Product-Line Pricing Are Price Leaders, Special-Event Pricing

question 39

True/False

Three types of product-line pricing are price leaders, special-event pricing, and comparison discounting.

---

Definitions:

Net Operating Income

The profit realized from a business's operations after subtracting all operating expenses except interest and taxes.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs, excluding fixed overhead costs.

Unit Product Cost

The total cost attributed to producing one unit of product, including direct materials, direct labor, and allocated manufacturing overhead.

Net Operating Income

A company's income after operating expenses have been deducted, but before deducting interest and taxes.