Match the Following Terms with Their Definitions

question 34

Multiple Choice

Match the following terms with their definitions.
-A specific activity range over which the cost changes are of interest

• A)Relevant range
• B)Break-even point
• C)Contribution margin
• D)Fixed costs
• E)Variable costs

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Definitions:

Markup Pricing

A pricing strategy where a fixed percentage is added to the cost of goods to cover expenses and profit.

Limit Pricing

A strategy where a firm sets its product prices low enough to deter new competitors from entering the market.

Price Leader

A company or product that has a large enough market share to influence the price levels of its products or services in the industry.

Entry of New Firms

The process by which new companies enter an industry, often leading to increased competition and impacts on market prices and incumbent firms.