Question 1

What is mark-up pricing?

Accepted Answer

The answer of What is mark-up pricing?...

Question 2

The percentage of the cost base which lies within their control in the near term is an area of focus for managers to develop a good understanding of an organization's cost base.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Cost-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 5

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

Accepted Answer

A)  high-low 
B)  bundling 
C)  skimming 
D)  discounting 
E)  penetration.

Question 6

The more the cost base is composed of fixed or indirect costs,the more difficult it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

What is the best way to cut costs?

Accepted Answer

The answer of What is the best way to cut...

Question 9

At the break-even point variable costs are equal to total fixed costs.

Accepted Answer

A) True 
 B)False

Question 10

To build an understanding of the cost base is accomplished by working through the various zones within an organization's functions and determining the cost composition of each.

Accepted Answer

A) True 
 B)False

Question 11

The make-up of their cost base is an area of focus for managers to develop a good understanding of an organization's cost base.

Accepted Answer

A) True 
 B)False

Question 12

Semi-fixed costs are those costs which are directly tied to the manufacturing of a product,or the delivery of a service,depending on the type of business being assessed.

Accepted Answer

A) True 
 B)False

Question 13

To build an understanding of the cost base is accomplished by working through the various zones within an organization's value chain and determining the cost composition of each.

Accepted Answer

A) True 
 B)False

Question 14

The formula for the Break-even Point plus profit is forecasted cash requirements.

Accepted Answer

A) True 
 B)False

Question 15

The more the cost base is composed of fixed or indirect costs,the more straightforward it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

Accepted Answer

A) True 
 B)False

Question 16

Virtual Electronics utilizes a strategy to charge a very high introductory price for their automobile video theater.After identifying that their rival firms did not carry this new product,they chose this strategy to achieve maximum profits.Virtual Electronics has chosen a skimming strategy.

Accepted Answer

A) True 
 B)False

Question 17

To build an understanding of the cost base is accomplished by working through the various zones within an organization's divisions and determining the cost composition of each.

Accepted Answer

A) True 
 B)False

Question 18

Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost.They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market,so they face no direct competition.Their decision to charge a high price is consistent with the ________ strategy.

Accepted Answer

A)  market pricing 
B)  price leadership 
C)  skimming price 
D)  penetration price 
E)  bundling

Question 19

Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost.They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market,so they face no direct competition.Their decision to charge a high price is consistent with the price leadership strategy.

Accepted Answer

A) True 
 B)False

Question 20

What should managers consider with operating at or below the BEP?

Accepted Answer

The answer of What should managers consider with operating at...

Exam 12: Technology and Operations Management

What is mark-up pricing?

The percentage of the cost base which lies within their control in the near term is an area of focus for managers to develop a good understanding of an organization's cost base.

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

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

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

The more the cost base is composed of fixed or indirect costs,the more difficult it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

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

What is the best way to cut costs?

At the break-even point variable costs are equal to total fixed costs.

To build an understanding of the cost base is accomplished by working through the various zones within an organization's functions and determining the cost composition of each.

The make-up of their cost base is an area of focus for managers to develop a good understanding of an organization's cost base.

Semi-fixed costs are those costs which are directly tied to the manufacturing of a product,or the delivery of a service,depending on the type of business being assessed.

To build an understanding of the cost base is accomplished by working through the various zones within an organization's value chain and determining the cost composition of each.

The formula for the Break-even Point plus profit is forecasted cash requirements.

The more the cost base is composed of fixed or indirect costs,the more straightforward it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

Virtual Electronics utilizes a strategy to charge a very high introductory price for their automobile video theater.After identifying that their rival firms did not carry this new product,they chose this strategy to achieve maximum profits.Virtual Electronics has chosen a skimming strategy.

To build an understanding of the cost base is accomplished by working through the various zones within an organization's divisions and determining the cost composition of each.

What should managers consider with operating at or below the BEP?