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35 Cards in this Set
- Front
- Back
A concession in price to achieve a desired goal
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allowance
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The fixed cost per unit produced; calculated by dividing fixed costs by number of units produced
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average fixed cost
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The sum of the average fixed cost and the average variable cost
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average total cost
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The variable cost per unit produced; calculated by dividing variable costs by number of units produced
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Average variable cost
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The trading of products.
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barter
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Geographic pricing that combines factory price and freight charges from the base point nearest the buyer
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base point pricing
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The point at which the costs of producing a product equal the revenue made from selling the product
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breakeven point
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A price reduction given to buyers for prompt payment or cash payment
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cash discount
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A quantity discount aggregated over a stated period
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cumulative discount
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A graph of the quantity of products expected to be sold at various prices if other factors remain constant
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demand curve
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A comparison price provided by others
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external reference price
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Costs that do not vary with changes in the number of units produced or sold; costs allocated on the basis of how money was actually spent, such as rent, salaries, office supplies, and utilities
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fixed costs
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A price indicating the producer is absorbing shipping costs
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F.O.B. destination
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The price of merchandise at the factory, before shipment
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F.O.B. factory
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Absorption of all or part of actual freight costs by the seller
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freight absorption pricing
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Reductions for transportation and other costs related to the physical distance between buyer and seller
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graphic pricing
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A price developed in the buyer's mind through experience with the product
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internal reference pricing
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The extra cost incurred by producing one more unit of a product
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marginal cost MC
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The change in total revenue resulting from the sale of an additional unit of a product
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Marginal Revenue MR
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A one-time price reduction based on the number of units purchased, the size of the order, or the product combination purchased
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Noncumulative discount
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Emphasizing factors other than price to distinguish a product from competing brands
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nonprice competition
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Drawn to products that signify prominence and status
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prestige sensitive
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The value that is exchanged for products in a marketing transaction
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Price
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Emphasizing price as an issue and matching or beating competitors' prices
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price comeptition
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Striving to pay low prices
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price consious
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Employing price differentials that injure competition by giving one or more buyers a competitive advantage> and is prohibited by law
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Price discrimination
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A measure of the sensitivity of demand to changes in price
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price elasticity of demand
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Deductions from list price for purchasing in large quantities
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quantity discount
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A price reduction given to buyers for purchasing goods or services out of season
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seasonal discount
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The sum of average fixed and average variable costs times the quantity produced
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total cost
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A reduction off the list price a producer gives to an intermediary for performing certain functions.
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trade (functional) discount
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Prices charged in sales between an organization's units
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transfer pricing
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Charging all customers the same price, regardless of geographic location; sometimes called postage-stamp pricing
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uniform geographic pricing
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Concerned about price and quality of a product
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Value consious
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Costs that vary directly with changes in the number of units produced or sold
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variable costs
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