Individuals Can Choose to Purchase Microsoft Stand-Alone Software Packages,such as the Home

question 99

Multiple Choice

Individuals can choose to purchase Microsoft stand-alone software packages,such as the Home and Student versions of Word,Excel,and PowerPoint,for $119.99 each.However,they may choose to purchase the Office Home and Student 2010 suite,which has all of these applications in the same package,for a price of $149.99.Microsoft is using a __________ pricing strategy.

• A) penetration
• B) prestige
• C) bundle
• D) odd-even
• E) standard mark-up

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Definitions:

Product Costing

The method used to assign costs to a product, including direct materials, direct labor, and overhead expenses.

Cost Driver

An activity or factor that incurs costs based on its level of use or consumption, influencing the total cost of production.

Activity Level

A measure of the volume or quantity of production or operations in a business, which can significantly impact costs.

Job Order Cost

The total cost associated with a specific job order, including direct materials, direct labor, and allocated manufacturing overhead.