Managerial session 6

The pricing strategy when the prices are set lower to actual price to trigger short term sales is classified as...

• Promotional Pricing

• Short Term pricing

• Quick Pricing

• Cyclical Pricing

The kind of reduction made to those buyers who buy large volumes of products is classified as...

• Cash Discount

• Seasonal Discount

• Functional Discount

• Quantity Discount

Woods and Co. is one of the largest office furniture suppliers in the UK. They outsource manufacturing overseas, sell direct and keep their prices low. New firms that do not have Woods' economies of scale find it impossible to compete. What kind of pricing is Woods and Co using?

• 1. Prestige Pricing

• Pre-Empitive Pricing

• Product Line Pricing

• Placement Pricing

Marie is a software developer who works freelance. She wants her customers to really value her work and so she consistently sets her prices higher than the competition. Sometimes she loses work because of this, but often she wins the contract. What kind of pricing is she using?

• Prestige Pricing

• Pre-Emptive Pricing

• Product Line Pricing

• Placement Pricing

Which of the following is not a market-based pricing method?

• Customer Value Pricing

• Psychological Price Barriers

• Contribution Pricing

• Going-rate Pricing

There is information on production by company X:

Direct Material: $10

Direct Labour: $5

The initial selling price is $20, if the company wants to increase the profit by 10% from the initial selling price, what is the new selling price?

• $20

• $30

• $22

• $25

Company Y manufactures a product with the following cost information:

Direct Materials: $6

Direct Labour: $4

Initially, the company has a selling price of $20, If the company wants to increase the gross margin by 20% from the current selling price (assuming all variable costs have a fixed value), at what selling price should it be set?

• $22

• $24

• $26

• $30

Company Z has the following cost structure for its product:

Direct Material: $15

Direct Labour: $10

If the company wants to maintain a profit margin of 25% on the selling price, what should be the selling price?

• 10

• 15

• 20

• 25

How many perspectives are there from the Balance ScoreCard?

• 1

• 2

• 3

• 4

The main functions of the Balance Scorecard

• Measuring employee performance

• Measuring the company's operations from various aspects

• Measure the level of relationship between work units

• measures the money turnover activities in the company