Question
Indicate whether each statement is true (T) or false (F). ____1.The three major influences on pricing decisions are customers, competitors, and costs. ____2.A company should
Indicate whether each statement is true (T) or false (F). ____1.The three major influences on pricing decisions are customers, competitors, and costs. ____2.A company should accept a one-time-only special order when the orders total contribution margin is positive. ____3.Value engineering is usually constrained by locked-in costs. ___4.The target rate of return on investment for a product is the same as the products markup as a percentage of its full unit cost. ___5.The cost of preparing an owners manual and including it in each product package is a value-added cost. ___6.One reason managers use the full cost of products as the cost base in their pricing decisions is to promote price stability. ___7.Life-cycle costing highlights manufacturing costs more than the costs of other business functions in the value chain. ___8.When there is price discrimination, pricing is not linked closely to the cost of the product. ___9.Under the U.S. Robinson-Patman Act, a manufacturing company cannot price discriminate between two customers if its intent is to lessen or prevent competition. ___10.Setting prices above average variable costs is regarded as pricing that is non-predatory. ___11.Collusive pricing occurs when a non-U.S. company sells a product in the U.S. at a price below the market value in the country where it is produced, and this lower price materially injures or threatens to materially injure an industry in the U.S.
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