A Technique in Which a Company Uses the Revenues from the Sale

question 30

Multiple Choice

A technique in which a company uses the revenues from the sale of those products that were once considered as waste to be more competitive in pricing their main product is:

• A) by-product pricing
• B) optional-product pricing
• C) bundling pricing
• D) captive-product pricing

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Definitions:

Base Pay

The initial rate of compensation an employee receives, not including benefits, bonuses, or other potential earnings.

Standard Hour Plans

Compensation systems where employees are paid a set rate for each unit of time worked, calculating earnings based on the number of hours worked at a predetermined rate.

Automobile Dealerships

Businesses that specialize in selling new or used cars at the retail level, often under a dealership contract with an automaker.

Straight Piecework

An incentive plan under which employees receive a certain rate for each unit produced.