Match the following term with the phrase that most closely describes it. Economic Pricing (used for Profit Maximization decisions) is: A system that charges customers for the services they consume A system that sets prices based on costs A system that starts with what consumers are willing to pay for a product and tries to design a product at a cost that allows a reasonable profit A system that prices based on the laws of supply and demand A way of using activity based methods to assess which customers are covering the costs they are generating QUESTION 7 Match the following term with the phrase that most closely describes it. Customer profitability analysis is: A system that charges customers for the services they consume A system that sets prices based on costs A system that starts with what consumers are willing to pay for a product and tries to design a product at a cost that allows a reasonable profit A system that prices based on the laws of supply and demand A way of using activity based methods to assess which customers are covering the costs they are generating QUESTION 10 In accepting a special order, the company should consider whether production capacity exists to complete the order. demand for the same product by regular customers will be adversely affected. the incremental costs are less than the incremental revenues. A and C All of the above are true. QUESTION 13 When making a decision to sell a joint product at the split off point or process it further, which of the following is not relevant? Joint cost assigned The sales value at split off The cost of further processing The sales value after further processing All are relevant to the decision