Practice by seller of offering same product at different prices, to different customers is known as
A. price incurrence
B. price discrimination
C. price targeting
D. price engineering
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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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If cost is eliminated, then reducing perceived usefulness that customers can obtain by using 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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If total production is 25000 units and target annual operating income is $300000 then target operating income per unit would be
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Costs that are planned in future and has not been incurred are known as
A. designed-in costs
B. locked-in costs
C. value added cost
D. both a and b
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Target annual operating income is divided with invested capital to calculate
A. target rate of return on investment
B. operating income per unit
C. operating cost per unit
D. cost of goods sold
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A technique, which accumulates and tracks costs of business function in value chain attributed to each market offering from R&D to final customer support, is called
A. product life cycle
B. life cycle budgeting
C. life cycle costing
D. target costing
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If cost base is $350 and markup component is 11% then prospective selling price will be
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An estimated price, which is expected to be paid by customers for particular market offering is classified as
A. target price
B. target cost
C. outsource price
D. off shore price
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An insensitivity of demand in relevance to change in price will be called
A. demand elasticity
B. price elasticity
C. price inelasticity
D. demand inelasticity
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An estimated cost per unit in long run, which enables company to achieve it's per unit target, operating income is classified as
A. target operating income per unit
B. target cost per unit
C. total current full cost
D. total cost per unit
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Concept, which states that resources are used to meet particular goals is
A. cost incurrence
B. valued incurrence
C. locked incurrence
D. non valued incurrence
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Target price is subtracted from per unit target operating income to calculate
A. total current full cost
B. total cost per unit
C. target operating income per unit
D. target cost per unit
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Selection of target price, understanding customer requirements, improving product designs and use of cross functional teams are considered as aspects of
A. target pricing
B. target costing
C. value engineering
D. all of above
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Kind of cost which on elimination, would not reduce perceived usefulness that customers can obtain by using market offering is known as
A. designed-in costs
B. locked-in costs
C. value added cost
D. non-value added cost
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Companies that perform in competitive markets using pricing approach are known as
A. independent revenue approach
B. market based approach
C. dependent revenue approach
D. cost based approach
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An income, which a company aims to earn by selling each unit of market offering is classified as
A. target operating income per unit
B. target cost per unit
C. total current full cost
D. total cost per unit
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Systematic evaluation of value chain, to reduce costs and high quality to achieve satisfied customers is known as
A. reverse engineering
B. value engineering
C. target engineering
D. operation engineering
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Major approaches to make decisions about pricing include
A. market based
B. sunk cost
C. cost based
D. both a and c
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Practice of seller to charge higher price for same market offering is classified as
A. peak-load pricing
B. elastic pricing
C. elastic demand
D. inelastic demand
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