All Free Management Sciences MCQs with Answers
Every Management Sciences question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.
3,770 questions · page 114 of 189
- A. location pricing
- B. channel pricing
- C. customer segment pricing
- D. product-form pricing
Explanation: Channel pricing sets different prices according to the distribution outlet through which the product is bought, such as a shop…
Correct answer: channel pricing- A. barter
- B. buy back arrangement
- C. offset
- D. compensation deal
Explanation: In an offset arrangement, the seller receives payment in cash but agrees to spend a specified amount in the buyer's country within an…
Correct answer: offset- A. non-predatory pricing
- B. descriptive pricing
- C. predatory pricing
- D. augmented pricing
Explanation: Predatory pricing deliberately sets prices below cost for a period to weaken or eliminate competitors, with the possibility of raising…
Correct answer: predatory pricing- A. fixed costs
- B. variable costs
- C. augmented costs
- D. total costs
Explanation: Total costs combine the costs that change with output and those that do not: total cost = variable cost + fixed cost.
Correct answer: total costs- A. survival
- B. maximum market share
- C. maximum current profit
- D. maximum market skimming
Explanation: Intense competition and excess capacity make survival the immediate pricing objective, even if prices must be lowered.
Correct answer: survival- A. demand inelastic items
- B. public utilities
- C. specialty items
- D. slower moving items
Explanation: Target-return pricing sets a price designed to produce a specified return on investment, a common practice for public utilities subject to…
Correct answer: public utilities- A. target markup price
- B. value pricing
- C. perceived pricing
- D. target return price
Explanation: Target-return pricing adds the required return per unit, calculated as desired return multiplied by invested capital and divided by…
Correct answer: target return price- A. $25.75
- B. $30.75
- C. $33.75
- D. $28.75
Explanation: Fixed cost per unit is $45,000 ÷ 60,000 = $0.75; adding the $25 variable cost gives a unit cost of $25.75.
Correct answer: $25.75- A. value pricing
- B. going rate pricing
- C. perceived pricing
- D. high low pricing
Explanation: Going-rate pricing sets a company’s price by following the prevailing prices charged by competitors.
Correct answer: going rate pricing- A. channel pricing
- B. product form pricing
- C. customer segment pricing
- D. image pricing
Explanation: Customer-segment pricing charges different prices to distinct groups for essentially the same offering, such as giving school groups a…
Correct answer: customer segment pricing- A. One seller, many buyers
- B. one buyer, one seller
- C. many sellers, many buyers
- D. One buyer, many sellers
Explanation: A Dutch-style reverse auction with sellers competing by offering the lowest price involves one buyer and many sellers.
Correct answer: One buyer, many sellers- A. special customer pricing
- B. special event pricing
- C. loss leader pricing
- D. cash rebates
Explanation: Special customer pricing gives a particular customer group, such as marathon athletes, a lower price than ordinary buyers.
Correct answer: special customer pricing- A. price functionality
- B. price discrimination
- C. price rebates
- D. price leadership
Explanation: Price discrimination occurs when a seller charges different prices for the same product even though the cost difference does not justify…
Correct answer: price discrimination- A. customer segment pricing
- B. product-form pricing
- C. channel pricing
- D. location pricing
Explanation: Location pricing charges different prices at different places for the same product when the cost of supplying those locations is the same.
Correct answer: location pricing- A. seasonal discount
- B. equalizing discount
- C. offset discount
- D. oligopolistic discount
Explanation: A seasonal discount rewards customers for purchasing during an off-season when demand is lower, helping the seller maintain sales and…
Correct answer: seasonal discount- A. offset discount
- B. allowance
- C. seasonal discount
- D. equalizing discount
Explanation: An allowance is an extra payment or price reduction given to resellers for taking part in approved promotional or special programs.
Correct answer: allowance- A. cost inflation
- B. over demand
- C. predatory pricing
- D. anticipatory pricing
Explanation: Cost inflation, excess demand, and anticipatory pricing can all push prices upward.
Correct answer: predatory pricing- A. push pricing strategy
- B. market penetration pricing
- C. quality leadership pricingManufacturing
- D. market skimming pricing
Explanation: Market skimming sets a high introductory price to capture buyers willing to pay more, then lowers the price as competition increases or…
Correct answer: market skimming pricing- A. non-functional discount
- B. descriptive discount
- C. quantity discount
- D. discount
Explanation: A prompt-payment reduction is specifically called a cash discount, and the available choices place it under the general term discount.
Correct answer: discount- A. countertrade
- B. sealed trade
- C. ascending trade
- D. descending tradePrice Comparisons
Explanation: Countertrade involves exchanging goods or services for other goods or services instead of settling entirely in money.
Correct answer: countertrade