The Apple IPad Was Recently Introduced at an Initial Price

question 237

Multiple Choice

The Apple iPad was recently introduced at an initial price of $650 for the 16 GB version.People waited in line overnight so they could be one of the first to own these unique pieces of electronics.Which pricing strategy did Apple use to help recoup its research and development costs for the iPad?

• A)price lining
• B)experience curve pricing
• C)customary pricing
• D)skimming pricing
• E)target pricing

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Definitions:

Engineering

The application of scientific, mathematical, and empirical principles to design, create, and analyze structures, machines, systems, or processes.

First-In, First-Out

An accounting method where the first units produced or acquired are the first ones to be sold or used.

Process Costing

An accounting methodology used to allocate production costs to individual units of output when the products are indistinguishable from each other.

Work in Process

Items or products that are in the stage of production but have not yet been completed or sold.