E-PolyLearning

1. The pricing method used by services companies, such as home repair services, architectural firms and automobile repair services is known as
a. product life cycle method
b. life cycle budgeting method
c. life cycle costing method
d. time and material method
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Answer: (d).time and material method

2. The practice by seller, about offering same product at different prices, to the different customers is known as
a. price incurrence
b. price discrimination
c. price targeting
d. price engineering
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Answer: (b).price discrimination

3. The total cost incur by customer to use, acquire, maintain and dispose service or product is classified as
a. budgeted life cycle
b. targeted life cycle
c. customer life cycle
d. operating life cycle
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Answer: (c).customer life cycle

4. If cost is eliminated, then reducing the perceived usefulness that customers can obtain by using the market offering will come under
a. designed-in costs
b. locked-in costs
c. value added cost
d. non-value added cost
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Answer: (c).value added cost

5. If total production is 25000 units and target annual operating income is $300000, then target operating income per unit would be
a. $15
b. $12
c. $16
d. $18
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Answer: (b).$12

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