Best Buy Sells Their Televisions at or Just Above Cost

question 11

Multiple Choice

Best Buy sells their televisions at or just above cost in the hope that when customers come to purchase televisions, they shall also purchase other peripheral items such as cables. What would these televisions also be known as?

• A)product bundles
• B)loss leaders
• C)price liners
• D)price penetrators

---

Definitions:

Raw Materials

Fundamental substances that are transformed through manufacturing processes into a final product, essential components in production.

Variable Manufacturing Overhead

Costs in the manufacturing process that fluctuate with production volume, such as utilities or materials used only in production.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Cash Account

An account that records all transactions made in cash, including receipts and payments.