Benefits of the Dual-Rate Method Include

question 36

Multiple Choice

Benefits of the dual-rate method include

• A)variable costs that are transformed into fixed costs for user decision making.
• B)the low cost of implementation.
• C)avoidance of expensive analysis for categorizing costs as either fixed or variable.
• D)information that leads to outsourcing decisions that benefit the organization as a whole.
• E)increased costs of implementation.

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Definitions:

Percentage Of Sale

A commission structure where payment is based on a percentage of the sales made.

Prestige Pricing

A pricing strategy where prices are set higher than average to present the image of exclusivity and high quality.

Pricing Strategy

An approach or method used by a business to determine the best price for its products or services to maximize profitability and meet customer and market demand.

Breakeven Analysis

A financial calculation to determine the number of units or revenue needed to cover total costs, at which point a business neither makes a profit nor suffers a loss.