A Technique in Which a Company Uses the Revenues from the Sale

question 98

Multiple Choice

A technique in which a company uses the revenues from the sale of those products that were once considered as waste to be more competitive in pricing their main product is ________ pricing.

• A)by-product
• B)optional-product
• C)bundling
• D)captive-product

Apply cost-volume-profit analysis to make informed operational and strategic decisions.

Understand the significance of fixed costs, variable costs, and sales mix in determining the break-even point and target profit levels.

Interpret changes in selling price, costs, or volume can affect break-even points and ultimately profitability.

Learn how to compute the margin of safety and its implications for business stability.

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Definitions:

Process Cost Accounting

An accounting method used to track and allocate costs of production by process or department for continuous manufacturing environments.

Distinctive Features

Unique characteristics or attributes that set an entity, object, or concept apart from others.

Unit Production Costs

The total expenses involved in manufacturing one unit of a product, covering materials, labor, and overhead costs.

Units Of Production

A depreciation method that allocates the cost of an asset over its useful life based on the amount of production or use during the period.