_____ Is the Strategy of Combining Two or More Products

question 51

Multiple Choice

_____ is the strategy of combining two or more products in one unit and pricing it less than if the units were sold separately.

• A) Skimming
• B) Bundling
• C) Premium pricing
• D) Price signaling

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Definitions:

Equivalent Units of Production

An accounting term used to denote the amount of finished goods produced by a company in a given period, after adjusting for work-in-progress inventory at the beginning and end of that period.

Materials Preparation Department

A division within a company responsible for preparing raw materials for production.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average of all units available for sale during the period.

Equivalent Units of Production

A concept used in cost accounting to standardize the quantity of output by converting unfinished products into their equivalent of finished goods.