Regarding Full-Line Pricing,which of the Following Statements Is True

question 143

Multiple Choice

Regarding full-line pricing,which of the following statements is true?

• A)A good marketing manager usually tries to price products in a line so that the prices will seem logically related and make sense to target customers.
• B)The marketing manager should try to cover all costs on the whole product line.
• C)Most customers seem to feel that prices in a product line should be somewhat related to cost.
• D)Not all companies that make a line of products must use full-line pricing.
• E)All these statements are true.

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Definitions:

Homogeneous Products

Goods that are considered identical by consumers, and can be substituted for one another, such as commodities.

Perpetual Methods

Inventory accounting systems where updates are made continuously to reflect the buying, selling, and production of goods.

Periodic

Occurring or repeating at regular intervals of time, often used to describe recurring financial or reporting events.

FIFO

First In, First Out, an inventory valuation method where the cost of the earliest items purchased are the first to be recognized in determining the cost of goods sold.