Chapter 6 Flashcards
1
Q
- Amount of money charged for a product
- Amount of money for which the same product or services offered
A
Price
2
Q
Amount of money spent
A
Costs
3
Q
Are frequently used interchangeably
A
Cost and price
4
Q
2 types of COSTs
A
Fixed and Variable costs
5
Q
Cost that do not change
A
Fixed costs
6
Q
Change directly with changes in quantity
A
Variable costs
7
Q
Sum of a company’s fixed costs and variable costs
A
Total cost
8
Q
Strategy of setting a high price for a company’s product
A
Market skimming pricing
9
Q
Strategy of setting a low price for a company’s product
A
Market penetration pricing
10
Q
Selling high quality -high price
A
Premium pricing strategy
11
Q
Selling high quality - low price
A
Good value pricing strategy
12
Q
Selling low quality - high price
A
Overcharging pricing strategy
13
Q
Selling low quality -low price
A
Economy pricing strategy
14
Q
Simplest pricing method
A
Cost-Plus pricing
15
Q
- selling price enables the company to break even
- condition where the company neither earns profit
A
Break-even pricing
