Consumers Sometimes Prefer Two-Part Pricing Because

question 120

Multiple Choice

Consumers sometimes prefer two-part pricing because:

• A) prices are often perceived as quality indicators
• B) consumers like to be in control of costs
• C) consumers are uncertain about the number and types of activities they might use at places like amusement parks
• D) consumers prefer a limited number of choices
• E) prices have little or no psychological influence on most consumers

Understand the concept and application of activity-based costing (ABC).

Distinguish between different levels of activities (Unit-level, batch-level, product-level, facility level).

Calculate overhead cost per unit using ABC.

Identify appropriate cost drivers for allocating overhead costs.

---

Definitions:

Absolute Threshold

The minimum stimulus intensity required for detection by a sense organ, signifying the point at which a stimulus becomes perceptible to the senses.

Noticeable Threshold

A threshold is the level at which a stimulus becomes sufficiently strong to produce a discernible effect or reaction.

Range Threshold

The minimum and maximum values within which a particular sensory stimulus, action, or phenomenon is perceptible or has an effect.

Receptors

Protein molecules on the surfaces of dendrites and cell bodies that have distinctive shapes and will interact only with specific neurotransmitters.