Product Pricing MCQs.
Unit 4 Cost Accounting
M. Com. Sem. 2 (HNGU)
Q,1 When new product is to be introduced the initial price is fixed at a very low level, it is known as______________
(A) Product Pricing
(B) Penetrating Pricing
(C) Cost Plus Pricing
(D) Direct Cost Pricing
Q.2 Temporarily reducing prices to increase short-run sales is an example of which of the following?
(A) Segmented Pricing
(B) Promotional Pricing
(C) Dynamic Pricing
(D) Geographical Pricing
Q.3 According to Stuart Freeman's concept of Industrial Family product are classified in how many categories?
(A) 4
(B) 10
(C) 2
(D) 5
Q.4 Which of the following is External factors for product pricing?
(A) Goal of the Company
(B) Cost of Product
(C) Quality of the Product
(D) Competitor's Price
Q.5 Which of the following is internal factor for product pricing?
(A) Types of buyers
(B) Distribution channels
(C) Service
(D) Demand and Supply
Q.6 If company want 20% profit on its total investment and following further information is available. Calculate selling price per unit.
Variable cost per unit Rs.800, Fixed cost per unit Rs.200, Total Investment Rs.2,50,00,000 and total unit produced 50000.
(A) Rs.1200
(B) Rs.1250
(C) Rs.1100
(D) Rs.1500
Q.7 Which of the following is not conversion cost?
(A) Direct Material
(B) Labour
(C) Factory Overheads
(D) Works Overheads
Q.8 If fixed cost Rs.5,00,000 and Variable cost per unit is Rs.5. Company produced and sold 50,000 unit calculate selling price per unit if company want 20% profit on sale.
(A) Rs.15
(B) Rs.18.75
(C) Rs.18
(D) Rs.20
Q.9 Pricing Decision is_________
(A) Profit Planning Decision
(B) Cost Planning Decision
(C) Organisation Planning Decision
(D) All of Above
Q.10 What is not correct for Marginal Cost Plus Pricing?
(A) It is contribution approach
(B) It is link with variable cost
(C) Fixed Cost are considered
(D) All of above
Q.11 Variable cost pricing is also known as____
(A) Full Cost Pricing
(B) Marginal Cost Pricing
(C) Direct Cost Pricing
(D) Differential Cost Pricing
Q.12 In which of the following circumstances, sales can be made even below marginal cost?
(A) When price of raw materials lying in stock have fallen and already a loss has been made.
(B) When the question of relieving some skilled worker during depression arises.
(C) When the materials are of perishable nature and they will detriorate if not used in the near future.
(D) All of above
Q.13 If Selling price is key factor, decision of optimum product mix is taken on the basis of ________
(A) Selling Price Per Unit
(B) Cost Price Per Unit
(C) Profit Volume Ratio
(D) Contribution Per Unit
Q.14 A mobile phone will be priced at Rs.150. What will its target cost of sales need to be if the retailer takes a 30% sales margin and the manufacturer, a 40% sales margin?
(A) Rs.45
(B) Rs.105
(C) Rs.63
(D) Rs.18
Q.15 If variable cost per unit is Rs.50, Number unit to be sold 2,000 and Fixed cost is Rs.50,000 what will be the selling price if company wants to earn profit of Rs.50,000?
(A) Rs.75
(B) Rs.100
(C) Rs.200
(D) Rs.150
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