An approach in which company under-costs it's one product and over-costs at least one product is classified as
A. service-cost across subsidizing
B. product-price cross subsidizing
C. product-cost cross subsidizing
D. product cross subsidizing
Answer: Option C
Solution(By Examveda Team)
An approach in which company under-costs it's one product and over-costs at least one product is classified as product-cost cross subsidizing. Product-cost cross-subsidization is the strategy of pricing a product above its market value to subsidize the loss of pricing a different product below its market value.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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