Question : 6) Life-cycle budgeting necessary before a company can determine the : 1185998

6) Life-cycle budgeting is necessary before a company can determine the product life cycle of a given product.

7) Developing life-cycle reports for each product requires tracking both costs and revenues on a product-by-product basis over a number of accounting periods.

8) Customer life-cycle costs focus on the total costs to a customer of acquiring and using a product or service until it is replaced.

9) Life-cycle costing, from an environmental sustainability perspective, considers the end of a products life-cycle to include disposal and recycling costs.

10) Predatory pricing is a type of price discrimination that

A) allows prices to be cut to the level of variable costs.

B) is required when a company declares bankruptcy so that it can sell its remaining goods quickly.

C) is used in the food industry for perishable goods.

D) deliberately sets prices very low, sometimes even below costs, so as to minimize competition.

E) actually ensures more supply access as high prices reduce demand.

11) To minimize the chances of violating pricing laws, a company should

A) maintain records that permit easy compilation of variable costs.

B) use a variable cost plus markup method of pricing.

C) keep a record of the upstream costs associated with low cost products.

D) use dumping only when a product is at the end of its life-cycle.

E) ensure that prices do not exceed variable costs plus fixed costs.

12) Collusive pricing occurs when

A) a company wants two products to sell for the same, or almost the same, amount.

B) a company wants a product to sell for the same as a competitor’s product.

C) two or more companies agree to sell a product at a price higher than should be expected.

D) competitors are part of the same large parent organization.

E) one large company dominates an industry.

13) Price discrimination to customers is the practice of

A) setting different prices for different products.

B) charging different prices for quantity amounts.

C) using variable costing for some products and full costing for other products when setting prices.

D) charging different prices to different customers or clients for the same products or services.

E) changing prices frequently.

14) An airline charges business and pleasure travellers different amounts. This is an example of

A) customer-preference pricing.

B) high-load pricing.

C) peak-load pricing.

D) price discrimination.

E) off-load pricing.

15) Life-cycle budgeting differs from life-cycle costing in that

A) budgeting includes revenues and costs, and costing includes only the costs.

B) budgeting includes all products of a company and costing is only for individual products.

C) budgeting is for the development and production of a product while costing is for only the production activities.

D) budgeting is for one accounting period and is a total dollar concept while costing is a per unit concept.

E) budgeting includes revenues, and costing includes only the costs.