When Demand Is Highly Price Sensitive, the Company Needs to Consider

question 17

Multiple Choice

When demand is highly price sensitive, the company needs to consider how it can _________________ from a global perspective.

• A) raise prices
• B) lower prices
• C) lower service
• D) raise quality
• E) reduce costs

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Definitions:

Special Order

An order for goods or services that is outside the company's normal production routine or product range.

Resale Value

The estimated amount that an asset or good will be sold for at the end of its useful life.

Replenished Material

Materials that have been restocked or resupplied to ensure adequate levels for production.

Relevant Cost

Costs that are directly influenced by a specific business decision and will change as a result of that decision.