A Bottle of Shampoo Shrink-Wrapped with a Bottle of Conditioner

question 238

Multiple Choice

A bottle of shampoo shrink-wrapped with a bottle of conditioner for 10 cents more than the regular price of the shampoo is an example of _____ pricing.

• A)penetration
• B)prestige
• C)bundle
• D)odd-even

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Definitions:

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost, based on standards set for quantity and price.

Actual Operations

The real-world activities carried out by a company, as opposed to planned or projected operations.

Materials Quantity Variance

The difference between the actual amount of materials used in production and the standard amount expected to be used, multiplied by the standard cost of the materials.

Standard Costs

Predetermined costs for products or services, used as a benchmark for performance evaluation.