A Manufacturer Using _____ Is Setting a High Price So

question 17

Multiple Choice

A manufacturer using _____ is setting a high price so that status-conscious consumers will be attracted to the product and buy it.

• A)skimming pricing
• B)prestige pricing
• C)price lining
• D)odd-even pricing

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Definitions:

Total Manufacturing Costs

The sum of all expenses directly involved in the production of goods, including direct materials, direct labor, and manufacturing overhead.

Direct Labor

Labor costs for employees who are directly involved in the production of goods or services.

Manufacturing Overhead

The indirect factory-related costs that are incurred when a product is manufactured, which include costs such as utilities, depreciation, and maintenance of equipment.

Total Manufacturing Costs

The aggregate cost incurred in the production of goods, combining direct materials, direct labor, and manufacturing overhead expenses.