To Increase Value Marketers May Increase Benefits, Decrease Price, or _________

question 120

Multiple Choice

To increase value marketers may increase benefits, decrease price, or _________.

• A)decrease benefits and increase price
• B)decrease both price and benefits
• C)both increase benefits and decrease price
• D)decrease price and decrease benefits
• E)do nothing and let the perceived value of the item increase as it matures in the life cycle

---

Definitions:

Direct Labor

The total cost of all the labor force directly involved in manufacturing a product or delivering a service.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period, illustrating financial performance.

Manufacturing Company

A business specialized in the production of goods through the use of labor, machines, tools, and chemical or biological processing or formulation.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products, calculated before the accounting period begins based on estimated costs and activity levels.