Question 1

At the break-even point total revenue is equal to total cost.

Accepted Answer

A) True 
 B)False

Question 2

Psychological pricing strategy represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors.

Accepted Answer

A) True 
 B)False

Question 3

At the break-even point profits are maximized.

Accepted Answer

A) True 
 B)False

Question 4

Ongoing operating levels below BEP will eventually result in the organization becoming _____.

Accepted Answer

A)  bankrupt 
B)  insolvent 
C)  ruined 
D)  a disaster 
E)  a success 
A)  bankrupt 
B)  insolvent 
C)  ruined 
D)  a disaster 
E)  a success

Question 5

Determining where the organization is to compete is a reason for managers to understand the configuration of the cost base of the organization.

Accepted Answer

A) True 
 B)False

Question 6

to:

Accepted Answer

A)  cut costs wherever possible. 
B)  calculate the break-even point and determine the potential profit at different levels of sales. 
C)  incur losses in the short run with the goal of raising prices later. 
D)  establish service facilities in low cost countries. 
E)  establish production facilities in low cost countries. 
A)  cut costs wherever possible. 
B)  calculate the break-even point and determine the potential profit at different levels of sales. 
C)  incur losses in the short run with the goal of raising prices later. 
D)  establish service facilities in low cost countries. 
E)  establish production facilities in low cost countries.

Question 7

Competition-based pricing is the process used to determine the profitability of a product at various levels of sales.

Accepted Answer

A) True 
 B)False

Question 8

The formula for the Break-even Point plus profit is:

Accepted Answer

A)  total sales revenue. 
B)  total fixed costs. 
C)  forecasted cash requirements. 
D)  variable cost per unit of output. 
E)  all of the above are correct 
A)  total sales revenue. 
B)  total fixed costs. 
C)  forecasted cash requirements. 
D)  variable cost per unit of output. 
E)  all of the above are correct

Question 9

All of the following are reasons for managers to understand the configuration of the cost base of the organization,EXCEPT

Accepted Answer

A)  developing strategies 
B)  making operations decisions 
C)  determining where the organization is to compete 
D)  determining how the organization is to compete 
E)  None of the above 
A)  developing strategies 
B)  making operations decisions 
C)  determining where the organization is to compete 
D)  determining how the organization is to compete 
E)  None of the above

Question 10

to incur losses in the short run with the goal of raising prices later.

Accepted Answer

A) True 
 B)False

Question 11

An organization's cost base is made up of the positive costs associated with delivering the organization's products or services to the marketplace.

Accepted Answer

A) True 
 B)False

Question 12

Barker Brothers Pens utilizes a strategy of low prices to attract customers and discourage competition.This represents a high-low strategy.

Accepted Answer

A) True 
 B)False

Question 13

The degree of controllability which managers have,in the near term,on costs being incurred is a key element of understand the configuration of the cost base.

Accepted Answer

A) True 
 B)False

Question 14

A type of indirect costs,called variable costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

Accepted Answer

A) True 
 B)False

Question 15

An organization's cost base is made up of the good costs associated with delivering the organization's products or services to the marketplace.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors?

Accepted Answer

A)  discounting strategy. 
B)  Odd pricing strategy. 
C)  Skimming strategy. 
D)  Price lining strategy. 
E)  Psychological pricing strategy. 
A)  discounting strategy. 
B)  Odd pricing strategy. 
C)  Skimming strategy. 
D)  Price lining strategy. 
E)  Psychological pricing strategy.

Question 17

__________ is the process used to determine the profitability of a product at various levels of sales.

Accepted Answer

A)  Cost-based pricing 
B)  Break-even analysis 
C)  Demand-based pricing 
D)  Competition-based pricing 
E)  Markup pricing 
A)  Cost-based pricing 
B)  Break-even analysis 
C)  Demand-based pricing 
D)  Competition-based pricing 
E)  Markup pricing

Question 18

is fundamental to determining the feasibility of various pricing objective levels.

Accepted Answer

A) True 
 B)False

Question 19

Discounting strategy represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors.

Accepted Answer

A) True 
 B)False

Question 20

The formula for the Break-even Point plus profit is total sales revenue.

Accepted Answer

A) True 
 B)False

At the break-even point total revenue is equal to total cost.

Psychological pricing strategy represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors.

At the break-even point profits are maximized.

Ongoing operating levels below BEP will eventually result in the organization becoming _____.

Determining where the organization is to compete is a reason for managers to understand the configuration of the cost base of the organization.

to:

Competition-based pricing is the process used to determine the profitability of a product at various levels of sales.

The formula for the Break-even Point plus profit is:

All of the following are reasons for managers to understand the configuration of the cost base of the organization,EXCEPT

to incur losses in the short run with the goal of raising prices later.

An organization's cost base is made up of the positive costs associated with delivering the organization's products or services to the marketplace.

Barker Brothers Pens utilizes a strategy of low prices to attract customers and discourage competition.This represents a high-low strategy.

The degree of controllability which managers have,in the near term,on costs being incurred is a key element of understand the configuration of the cost base.

A type of indirect costs,called variable costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

An organization's cost base is made up of the good costs associated with delivering the organization's products or services to the marketplace.

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors?

__________ is the process used to determine the profitability of a product at various levels of sales.

is fundamental to determining the feasibility of various pricing objective levels.

Discounting strategy represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors.

The formula for the Break-even Point plus profit is total sales revenue.

What Is Business

The Canadian Economic Environment

The Global Marketplace

The Environment and Sustainable Business Practices

Ethics and Corporate Social Responsibility

Developing a Business Strategy

Entrepreneurship and Forms of Business Ownership

Developing Your Business Structure and Culture

Managing and Leading the Organizations Talent

The Marketing Challenge

Understanding the Marketing Effort

Understanding Business Finances

Financial Statements Structure and Interpretation

Analyzing New Business Ventures

Filters

Exam 12: Technology and Operations Management

At the break-even point total revenue is equal to total cost.

Psychological pricing strategy represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors.

At the break-even point profits are maximized.

Ongoing operating levels below BEP will eventually result in the organization becoming _____.

Determining where the organization is to compete is a reason for managers to understand the configuration of the cost base of the organization.

to:

Competition-based pricing is the process used to determine the profitability of a product at various levels of sales.

The formula for the Break-even Point plus profit is:

All of the following are reasons for managers to understand the configuration of the cost base of the organization,EXCEPT

to incur losses in the short run with the goal of raising prices later.

An organization's cost base is made up of the positive costs associated with delivering the organization's products or services to the marketplace.

Barker Brothers Pens utilizes a strategy of low prices to attract customers and discourage competition.This represents a high-low strategy.

The degree of controllability which managers have,in the near term,on costs being incurred is a key element of understand the configuration of the cost base.

A type of indirect costs,called variable costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

An organization's cost base is made up of the good costs associated with delivering the organization's products or services to the marketplace.

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors?

__________ is the process used to determine the profitability of a product at various levels of sales.

is fundamental to determining the feasibility of various pricing objective levels.

Discounting strategy represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors.

The formula for the Break-even Point plus profit is total sales revenue.

What Is Business

The Canadian Economic Environment

The Global Marketplace

The Environment and Sustainable Business Practices

Ethics and Corporate Social Responsibility

Developing a Business Strategy

Entrepreneurship and Forms of Business Ownership

Developing Your Business Structure and Culture

Managing and Leading the Organizations Talent

The Marketing Challenge

Understanding the Marketing Effort

Understanding Business Finances

Financial Statements Structure and Interpretation

Analyzing New Business Ventures

Filters