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 116 of 189
- A. target profit pricing
- B. perceived value pricing
- C. break-even pricing
- D. target return pricing
Explanation: Perceived-value pricing sets the price according to what buyers believe the complete offering is worth, including warranty and customer…
Correct answer: perceived value pricing- A. cost
- B. supply
- C. demand
- D. discount and allowance
Explanation: Demand helps determine the price a product can command because buyers' willingness to purchase changes with price.
Correct answer: demand- A. interactive
- B. augmented
- C. elastic
- D. inelastic
Explanation: Demand is inelastic when a price change produces little or no change in quantity demanded.
Correct answer: inelastic2304. The cost of products that fluctuate with the level of production are classified as ___________?
- A. variable costs
- B. augmented costs
- C. total costs
- D. fixed costsCompare Credit Cards
Explanation: Variable costs change with production volume, such as raw materials and direct packaging.
Correct answer: variable costs- A. 5333
- B. 6333
- C. 7333
- D. 4333
Explanation: Break-even volume equals fixed cost divided by contribution per unit: $80,000 ÷ ($25 − $10) = 5,333.33 units, so the listed answer is…
Correct answer: 5333- A. $18,000
- B. $16,000
- C. $34,000Book Sales Coaching
- D. $340,000
Explanation: Total cost is found by adding fixed and variable costs: $18,000 + $16,000 = $34,000. The $340,000 option is a misplaced-zero distractor.
Correct answer: $34,000Book Sales Coaching- A. compensation deal
- B. buy back arrangement
- C. barter
- D. offset
Explanation: A compensation deal combines partial cash payment with goods or services supplied by the buyer.
Correct answer: compensation deal- A. cash rebates
- B. loss leader pricing
- C. special customer pricing
- D. special event pricing
Explanation: Loss-leader pricing reduces the price of a well-known product to attract customers, who may then purchase other profitable items.
Correct answer: loss leader pricing- A. break-even pricing
- B. perceived value pricing
- C. value pricing
- D. target return pricing
Explanation: Value pricing offers acceptable or good quality at a relatively low price, stressing customer value rather than maximum margins.
Correct answer: value pricing- A. reduction of discounts
- B. unbundling
- C. escalator clauses
- D. delayed quotation pricing
Explanation: Delayed quotation pricing means the seller postpones fixing the price until the product is completed, which protects against cost changes…
Correct answer: delayed quotation pricing- A. seasonal allowances
- B. trade-off allowances
- C. trade-in allowances
- D. promotional allowances
Explanation: Promotional allowances are extra payments or credits given to channel members for advertising, displaying, or supporting a sales…
Correct answer: promotional allowances- A. fixed costs
- B. labor wages
- C. employees' salaries
- D. variable costs
Explanation: In basic pricing classifications, overheads are treated as fixed costs because they do not change directly with each unit produced or…
Correct answer: fixed costs- A. supply
- B. cost
- C. discount and allowance
- D. demand
Explanation: Cost sets the price floor because selling below total relevant cost cannot be sustained in the long run.
Correct answer: cost- A. season pricing
- B. emergency pricing
- C. channel pricing
- D. time pricing
Explanation: Time pricing varies the price or buying opportunity according to a time limit, such as ordering within 20 minutes of a television…
Correct answer: time pricing- A. escalator clauses
- B. reduction of discounts
- C. unbundling
- D. delayed quotation pricing
Explanation: An escalator clause allows the seller to increase the contract price for stated inflation or cost increases before delivery.
Correct answer: escalator clauses- A. price-war traps
- B. all of above
- C. low-quality traps
- D. shallow-pockets traps
Explanation: Price cutting can trigger a price war, expose a firm with shallow pockets to cash-flow pressure, and make customers suspect low quality.
Correct answer: all of above- A. analyzing prices of competitor's
- B. estimating costs
- C. select pricing objective
- D. determining demand
Explanation: Pricing begins by selecting the pricing objective, such as profit maximisation, market share growth, or survival.
Correct answer: select pricing objective- A. markup pricing
- B. markup costing
- C. target return costing
- D. target return pricing
Explanation: Target-return pricing sets a price by adding the return desired on the investment to the cost and expected sales volume.
Correct answer: target return pricing- A. unbundling
- B. reduction of discounts
- C. delayed quotation pricing
- D. escalator clauses
Explanation: Unbundling means separating a previously combined package and charging for its components individually.
Correct answer: unbundling- A. fourth-degree discrimination
- B. third-degree discrimination
- C. first-degree price discrimination
- D. second-degree price discrimination
Explanation: Third-degree price discrimination charges different prices to identifiable customer groups, such as students, seniors, or business and…
Correct answer: third-degree discrimination