JJ pays overhead each month, including his company's bills for rent, heat, interest, and salaries, which are examples of ________ costs.
A. total
B. average
C. activity-based
D. variable
E. fixed
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Costs that differ directly with the level of production are known as ________ costs.
A. fixed
B. overhead
C. opportunity
D. target
E. variable
The decline in the average cost of production with accumulated production experience is called the ________.
A. demand curve
B. supply chain
C. learning curve
D. value chain
E. indifference curve
Which of the following is the most elementary pricing method?
A. value pricing
B. going-rate pricing
C. markup pricing
D. target-return pricing
E. perceived-value pricing
Despite its weaknesses, markup pricing remains popular for which of the following reasons?
A. Sellers can determine demand much more easily than they can estimate costs.
By tying the price to cost, the pricing task becomes more sophisticated.
C. When all firms in the industry use markup pricing, price competition flourishes.
D. Sellers take advantage of buyers when the latter's demand becomes acute.
E. Many people feel that cost-plus pricing is fairer to both buyers and sellers.
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