[Free New Updation] Free Download Real Cisco 200-155 Dumps DCICT Exam Study Guide CCNA Data Center Video Training 85Q&As [72 to 86]
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Free Cisco 200-155 Dumps Exam Questions and Answers(72-86)
QUESTION 72
A seller’s price is below an appropriate measure of casts. Moreover, the seller has a reasonable prospect of recovering the resulting loss in the future through higher prices or a greater market share. Accordingly, the seller has engaged in:
A. Collusive pricing.
B. Dumping.
C. Predatory pricing.
D. Price discrimination.
200-155 exam Correct Answer: C
Explanation
Explanation/Reference:
Explanation:
Predatory pricing is intentionally pricing below cost to eliminate competition and reducesupply. Federal statutes and many state laws prohibit the practice. The U.S.
Supreme Courthas held that pricing is predatory when two conditions are met: 1) the seller’s price is belowan appropriate measure of its costs,” and 2) it has a reasonable prospect of recovering theresulting IOSS through higher prices or greater market share.
QUESTION 73
In which product-mix pricing strategy is it appropriate for the seller to accept any price that exceeds the storage and deliver} casts for the product?
A. By-product pricing.
B. Optional-product pricing.
C. Captive-product pricing.
D. Product-bundle pricing.
Correct Answer: A
Explanation
Explanation/Reference:
Explanation:
A by-product is a product of relatively minor importance generated during the production ofone or more other products. Its production entails no additional costs. Any amount receivedabove the storage and delivery. casts for a by-product allows the seller to reduce the mainproduct’s price to make it more competitive.
QUESTION 74
Several surveys paint out that most managers use full product casts, including unit fixed casts and unit variable costs, in developing cast-based pricing. Which one of the following is least associated with cost-based pricing?
A. Price stability.
B. Price justification.
C. Target pricing.
D. Fixed-cost recovery.
200-155 dumps Correct Answer: C
Explanation
Explanation/Reference:
Explanation:
A target price is the expected market price of a product, given the company’s knowledge ofits customers and competitors. Hence, under target pricing, the sales price is known beforethe product is developed. Subtracting the unit target profit margin determines the long-termunit target cast. If cost- cutting measures do not permit the product to be made at or below thetarget cast, it will be abandoned.
QUESTION 75
Fulford Company applies the target pricing and costing approach. The following information about costs and revenues of Fulford’s product are available for the year just ended: Fulford plans to increase unit sales to 80,000 by reducing the product’s unit price to US $320. If Fulford desires a unit target operating income of 12CYo, by what amount must it reduce the full cost per unit?
A. US $32.00
B. US $38.40
C. US $70.40
D. US $80.00
Correct Answer: C
Explanation
Explanation/Reference:
Explanation:
Unit target operating income is US $38.40 $320 unit target price 12°X0). Hence, the unittarget full cost is US $281.60 $320 – $38.40). The current full cost per unit is US $352.00[($13,200,000 CGS + $7,920,000 other value chain operating costs) – 60,000 units sold], sothe necessary reduction in the full cost per unit is US $70.40 $352.00 – $281.60).
QUESTION 76
A company’s product has an expected 4-year life cycle from research, development, and design through its withdrawal from the market. Budgeted costs are: The company plans to produce 200,000 units and price the product at 125°!a of the wholelife unit cost. Thus, the budgeted unit selling price is:
A. US $15
B. US $31
C. US $36
D. US $45
200-155 pdf Correct Answer: D
Explanation
Explanation/Reference:
Explanation:
Whole-life costs include after-purchase costs operating, support, repair, and disposal)incurred by customers as well as life-cycle costs R&D, design, manufacturing, marketing,distribution, and research). Hence, the budgeted unit whole-life cost is US $36 [($2,000,000+ $3,000,000 + $1,200,000 + $1,000,000) – 200,000 units], and the budgeted unit sellingprice is US $45 $36 125CYo).
QUESTION 77
A manufacturing company produces plastic utensils for a particular segment at the lowest possible cost. The company is pursuing a cost:
A. Leadership strategy.
B. Focus strategy.
C. Differentiation strategy.
D. Containment strategy.
Correct Answer: B
Explanation
Explanation/Reference:
Explanation:
A cost focus strategy aims at cost leadership in a particular segment, such as a regionalmarket or a specialty product line. The rationale for a focus strategy is that the narrowermarket can be better served.
QUESTION 78
The dominant firm in a market pursues a market-leader strategy. This strategy may involve
A. Holding the market stable to avoid attracting new competitors.
B. A flank defense to strengthen the firm’s brand.
C. Sending market signals as a mobile defense.
D. Innovations as an offensive strategy.
200-155 vce Correct Answer: D
Explanation
Explanation/Reference:
Explanation:
Constant innovation to improve products and services, control costs, and increase distributioneffectiveness is the basis for a good offensive strategy. The leader must continuouslyimprove the value offered to customers.
QUESTION 79
During the growth stage of a product’s life cycle,
A. The quality of products is poor.
B. New product models and features are introduced.
C. There is little difference between competing products.
D. The quality of the products becomes more variable and products are less differentiated.
Correct Answer: B
Explanation
Explanation/Reference:
Explanation:
In the growth stage, sales and profits increase rapidly, cost per customer decreases, customersare early adopters, new competitors enter an expanding market, new product models andfeatures are introduced, and promotion spending declines or remains stable. The firm entersnew market segments and distribution channels and attempts to build brand loyalty andachieve the maximum share of the market. Thus, prices are set to penetrate the market,distribution channels are extended, and the mass market is targeted through advertising. Thestrategy is to advance by these means and by achieving economies of productive scale.
QUESTION 80
In a product’s life cycle, the first symptom of the decline stage is a decline in the:
A. Firm’s inventory levels.
B. Product’s sales.
C. Product’s production cost.
D. Product’s prices.
200-155 exam Correct Answer: B
Explanation
Explanation/Reference:
Explanation:
The sales of most product types and brands eventually decrease permanently. This declinemay be slow or rapid. This first symptom of the decline stage of a product’s life cycle triggerssuch other effects as price cutting, narrowing of the product line, and reduction in promotionbudgets.
QUESTION 81
At the introduction stage of an innovative product, the profit growth is normally slow due to:
A. Expensive sales promotion.
B. High competition.
C. A mass market.
D. Available alternatives.
Correct Answer: A
Explanation
Explanation/Reference:
Explanation:
The introduction stage is characterized by slow sales growth and lack of profits because ofthe high expenses of promotion and selective distribution to generate awareness of theproduct and encourage customers to try it. Thus, the per-customer cost is high. Competitorsare few, basic versions of the product are produced, and higher-income customersinnovators) are usually targeted. Cost-plus prices are charged. They may initially be high topermit cost recovery when unit sales are low. The strategy is to infiltrate the market, plan forfinancing to cope with losses, build supplier relations, increase production and marketingefforts, and plan for competition.
QUESTION 82
While auditing a marketing department, the internal auditor discovered that the product life cycle model was used to structure the marketing mix. Under such a philosophy, the price charged on a consistent basis for a specific product would probably be lowest during which life cycle stage?
A. Introduction stage.
B. Growth stage.
C. Maturity stage.
D. Decline stage.
200-155 dumps Correct Answer: C
Explanation
Explanation/Reference:
Explanation:
During the maturity stage, competition is at its greatest and costs are at their lowest. Moreover, firms are engaged in competitive price-cutting measures, resulting in some of thelowest prices seen during a product’s life cycle.
QUESTION 83
While auditing a marketing department, the internal auditor discovered that the product life cycle model was used to structure the marketing mix. Under such a philosophy, the opportunity for cost reductions would be greatest in which stage of the life cycle?
A. Introduction stage.
B. Growth stage.
C. Maturity stage.
D. Decline stage.
Correct Answer: B
Explanation
Explanation/Reference:
Explanation:
During the growth stage, the opportunity for cost reductions is at its maximum becauseproduction volume is increasing at a high rate. Thus, fixed costs are being
spread over moreunits of production, and the benefits of the learning curve are being realized.
QUESTION 84
While auditing a marketing department, the internal auditor discovered that the product life cycle model was used to structure the marketing mix. The manager has asked the auditor for advice about increasing advertising of various products. During which stage of the life cycle would it be appropriate to advertise that the company’s product is the lowest price and best quality of all competitors?
A. Introduction stage.
B. Growth stage.
C. Maturity stage.
D. Decline stage.
200-155 pdf Correct Answer: C
Explanation
Explanation/Reference:
Explanation:
The maturity stage is the ideal time for advertising lower prices and superior quality becausethis is the period during a product’s life when competition is greatest. Due to the availabilityof many alternatives or substitutes, a firm has reasons to set itself apart. Because price andquality are both concerns of customers during the maturity stage, it is ideal for the firm todifferentiate its product by advertising low prices and higher quality.
QUESTION 85
A firm buys like-new computer equipment from bankrupt companies and resells it in foreign markets at prices significantly below those charged by competitors. The firm is:
A. Engaged in dumping.
B. Engaged in price discrimination.
C. Operating in a gray market
D. Operating in a black market.
Correct Answer: C
Explanation
Explanation/Reference:
Explanation:
In a gray market, products imported from one country to another are sold by persons trying tomake a profit from the difference in retail prices between the two countries. In essence, theseller firm in this case was exploiting a price difference between markets.
QUESTION 86
A firm ships its product to a foreign subsidiary and charges a price that may increase import duties but lower the income taxes paid by the subsidiary. The most likely reason for these effects is that the:
A. Price is an arm’s-length price.
B. Price is a cost-plus price.
C. Transfer price is too low.
D. Transfer price is too high.
200-155 vce Correct Answer: D
Explanation
Explanation/Reference:
Explanation:
A transfer price is the price charged by one subunit of a firm to another. When thesubsidiary-buyer is in a foreign country, the higher the transfer, the higher the potentialtariffs. However, the tax levied on a subsequent sale by the subsidiary will be lower becauseof its higher acquisition cost.
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