1. Fill in the Blank.............. "The number of calls by/per product to your "customer complaint hotline" is used as a basis for assigning Customer Service department costs to the product lines." This is an example of the cost

allocation criteria:

benefits received

fairness or equity

O cause and effect

ability to bear

2. When Company "Q" develops new products, it first examines the marketplace for customers' potential product needs/price levels. Company "Q" then undertakes to design a new product that meets those needs at a cost that will deliver an acceptable profit line.

The above is a good example of the following pricing strategy

Life-cycle pricing

Value chain pricing

Target pricing

Cost-plus pricing