Decision Making Paper 8

1

Which of the following price adjustment strategies is designed to stabilize production for the selling firm?






2

Market-skimming pricing strategies could be appropriate when






3

Which of the following pricing policies involves the selling company setting freight charges to customers at the actual average freight cost?






4

In which product-mix pricing strategy is it appropriate for the seller to accept any price that exceeds the storage and delivery costs for the product?






5

Several surveys point out that most managers use full product costs, including unit fixed costs and unit variable costs, in developing cost-based pricing. Which one of the following is least associated with cost-based pricing?






6

If a U.S. manufacturer’s price in the U S market is below an appropriate measure of costs and the seller has a reasonable prospect of recovering the resulting loss in the future through higher prices or a greater market share, the seller has engaged in






7

Which one of the following will not occur in an organization that gives managers throughout the organization maximum freedom to make decisions?






8

The most fundamental responsibility center affected by the use of market-based transfer prices is a(n)






9

Transfer pricing should encourage goal congruence and managerial effort. In a decentralized organization, it should also encourage autonomous decision making. Managerial effort is the






10

A proposed transfer price may be based upon the outlay cost. Outlay cost plus opportunity cost is the






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