A Penetration Pricing Policy

question 178

Multiple Choice

A penetration pricing policy

• A) tries to sell the top of the demand curve initially.
• B) tries to sell the whole market at one low price.
• C) tries to sell the top of a market.
• D) tries to target the elite market first.
• E) involves price movement down the demand curve over time.

---

Definitions:

Production Process

The sequence of operations or activities involved in converting raw materials and components into finished goods or services.

Process Costing

A costing method used for homogeneous products that are produced in a continuous process, allocating costs over the entire production run.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

FIFO Process Costing

An accounting method used to evaluate the cost of production, where the first items produced are assumed to be the first sold or used.