Customers Must See Value in a Product or Service Before

question 79

Multiple Choice

Customers must see value in a product or service before they are willing to exchange time or money to obtain it,but not all customers see the same value in a product.To analyze how many units will be sold at any given price point,marketers draw on

• A) a demand curve.
• B) the law of averages.
• C) multiple regression analyses.
• D) target return strategies.
• E) a sales orientation.

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Definitions:

Variable Costing

A cost accounting method that includes only variable production costs in unit product costs, and treats fixed costs as period expenses that are charged against revenue in the period they are incurred.

Variable Costs

Costs that change in proportion to the level of goods or services a business produces.

Variable Costing

An accounting method that only includes variable production costs (costs that change with output level) in the cost of goods sold and inventory valuation.