Question 1

The government monitors transfer pricing closely because it is an easy way for companies to avoid taxes on profits.

Accepted Answer

A) True 
 B)False

Question 2

What is a theatre practising when they lower prices in the afternoon to offset low demand and raise prices in the evening when demand rises?

Accepted Answer

A)  modified breakeven analysis 
B)  yield management 
C)  exploitation of the local theatre-goers 
D)  marginal pricing 
A)  modified breakeven analysis 
B)  yield management 
C)  exploitation of the local theatre-goers 
D)  marginal pricing

Question 3

What type of price will a manufacturer be quoting when it quotes the same price for goods (including freight charges) to a buyer in Toronto, another in Calgary, and a third in Vancouver?

Accepted Answer

A)  basing-point 
B)  destination 
C)  zone 
D)  uniform-delivered 
A)  basing-point 
B)  destination 
C)  zone 
D)  uniform-delivered

Question 4

What is usually the pricing strategy used in selling expensive and luxurious automobiles?

Accepted Answer

A)  meeting competitors' prices 
B)  return on investment 
C)  prestige 
D)  revenue maximization 
A)  meeting competitors' prices 
B)  return on investment 
C)  prestige 
D)  revenue maximization

Question 5

What type of pricing is being used when the price of Cheerios cereal is displayed as 14.7 cents per gram?

Accepted Answer

A)  odd 
B)  commodity 
C)  unit 
D)  penetration 
A)  odd 
B)  commodity 
C)  unit 
D)  penetration

Question 6

A firm that manufactures TVs sells them at prices of $750, $1000, and $1250.The manufacturer will return $75, $100, or $125 by mail to those who purchase its brand of TV.What is this reduction in price an example of?

Accepted Answer

A)  a promotion allowance 
B)  a trade-in 
C)  a rebate 
D)  a quantity discount 
A)  a promotion allowance 
B)  a trade-in 
C)  a rebate 
D)  a quantity discount

Question 7

Transfer pricing typically is a very simple process, especially with multinational corporations.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements BEST describes full-cost pricing?

Accepted Answer

A)  It allocates only those fixed costs that can be directly attributed to production. 
B)  It explicitly considers demand and competition. 
C)  It uses all relevant variable costs in setting the product's price. 
D)  It relates overhead expenses to expected revenue. 
A)  It allocates only those fixed costs that can be directly attributed to production. 
B)  It explicitly considers demand and competition. 
C)  It uses all relevant variable costs in setting the product's price. 
D)  It relates overhead expenses to expected revenue.

Question 9

What would be used to calculate the number of units of product that must be sold at a certain price in order to recover fixed costs?

Accepted Answer

A)  breakeven analysis 
B)  cost-plus pricing 
C)  macroeconomic price theory 
D)  marginal analysis 
A)  breakeven analysis 
B)  cost-plus pricing 
C)  macroeconomic price theory 
D)  marginal analysis

Question 10

What type of discount is given off the list price for large-volume purchases?

Accepted Answer

A)  cash 
B)  trade 
C)  quantity 
D)  functional 
A)  cash 
B)  trade 
C)  quantity 
D)  functional

Question 11

A product is priced to sell for $12 with average variable costs of $8.The company expects to earn a profit of $400 000 with its total fixed costs of $120 000.What is the minimum number of units that must be sold in order to reach this target return?

Accepted Answer

A)  80 000 
B)  120 000 
C)  130 000 
D)  400 000 
A)  80 000 
B)  120 000 
C)  130 000 
D)  400 000

Question 12

The market price of a product is always the same as its list price.

Accepted Answer

A) True 
 B)False

Question 13

A company has demonstrated that their price discounts and promotional allowances do not restrict competition.What is the term for the pricing-related practice defended?

Accepted Answer

A)  bid rigging 
B)  predatory pricing 
C)  price discrimination 
D)  price fixing 
A)  bid rigging 
B)  predatory pricing 
C)  price discrimination 
D)  price fixing

Question 14

In the global arena, profitability objectives may not be useable, especially if the firm is a price leader or a low-cost supplier.

Accepted Answer

A) True 
 B)False

The government monitors transfer pricing closely because it is an easy way for companies to avoid taxes on profits.

What is a theatre practising when they lower prices in the afternoon to offset low demand and raise prices in the evening when demand rises?

What type of price will a manufacturer be quoting when it quotes the same price for goods (including freight charges) to a buyer in Toronto, another in Calgary, and a third in Vancouver?

What is usually the pricing strategy used in selling expensive and luxurious automobiles?

What type of pricing is being used when the price of Cheerios cereal is displayed as 14.7 cents per gram?

A firm that manufactures TVs sells them at prices of $750, $1000, and $1250.The manufacturer will return $75, $100, or $125 by mail to those who purchase its brand of TV.What is this reduction in price an example of?

Transfer pricing typically is a very simple process, especially with multinational corporations.

Which of the following statements BEST describes full-cost pricing?

What would be used to calculate the number of units of product that must be sold at a certain price in order to recover fixed costs?

What type of discount is given off the list price for large-volume purchases?

A product is priced to sell for $12 with average variable costs of $8.The company expects to earn a profit of $400 000 with its total fixed costs of $120 000.What is the minimum number of units that must be sold in order to reach this target return?

The market price of a product is always the same as its list price.

A company has demonstrated that their price discounts and promotional allowances do not restrict competition.What is the term for the pricing-related practice defended?

In the global arena, profitability objectives may not be useable, especially if the firm is a price leader or a low-cost supplier.

Marketing: The Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

Consumer Behaviour

Business-to-Business (B2B) Marketing

Serving Global Markets

Marketing Research, Decision Support Systems, and Sales Forecasting

Market Segmentation, Targeting, and Positioning

Product and Service Strategies

Developing and Managing Brand and Product Strategies

Marketing Channels and Supply Chain Management

Retailers Wholesalers and Direct Marketers

Integrated Marketing Communications

Advertising and Digital Communications

Personal Selling and Sales Promotion

TB Boone 3Ce final

Filters

Exam 16: Pricing Concepts and Strategies

The government monitors transfer pricing closely because it is an easy way for companies to avoid taxes on profits.

What is a theatre practising when they lower prices in the afternoon to offset low demand and raise prices in the evening when demand rises?

What type of price will a manufacturer be quoting when it quotes the same price for goods (including freight charges) to a buyer in Toronto, another in Calgary, and a third in Vancouver?

What is usually the pricing strategy used in selling expensive and luxurious automobiles?

What type of pricing is being used when the price of Cheerios cereal is displayed as 14.7 cents per gram?

A firm that manufactures TVs sells them at prices of $750, $1000, and $1250.The manufacturer will return $75, $100, or $125 by mail to those who purchase its brand of TV.What is this reduction in price an example of?

Transfer pricing typically is a very simple process, especially with multinational corporations.

Which of the following statements BEST describes full-cost pricing?

What would be used to calculate the number of units of product that must be sold at a certain price in order to recover fixed costs?

What type of discount is given off the list price for large-volume purchases?

A product is priced to sell for $12 with average variable costs of $8.The company expects to earn a profit of $400 000 with its total fixed costs of $120 000.What is the minimum number of units that must be sold in order to reach this target return?

The market price of a product is always the same as its list price.

A company has demonstrated that their price discounts and promotional allowances do not restrict competition.What is the term for the pricing-related practice defended?

In the global arena, profitability objectives may not be useable, especially if the firm is a price leader or a low-cost supplier.

Marketing: The Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

Consumer Behaviour

Business-to-Business (B2B) Marketing

Serving Global Markets

Marketing Research, Decision Support Systems, and Sales Forecasting

Market Segmentation, Targeting, and Positioning

Product and Service Strategies

Developing and Managing Brand and Product Strategies

Marketing Channels and Supply Chain Management

Retailers Wholesalers and Direct Marketers

Integrated Marketing Communications

Advertising and Digital Communications

Personal Selling and Sales Promotion

TB Boone 3Ce final

Filters