1) Variable costs in creating fashion goods include all the of the following except:

Workers' wages Executive Salaries Transportation Raw Materials

2) The demand for cashmere in Asia influences the price of cashmere in the United States.

True

False

3)An increase in profits accompanies an increase in market share.

True

False

4) Markup may be expressed both in dollars and in percentages and based on the retail or wholesale price of goods.

True

False

5) The goal of profit maximization is to

Obtain as much revenue as possible

Maintain an adequate profit level.

Learn how well management is using company asssets.

Establish and keep higher prices.

6) Pricing Objectives need to be realistic and measurable but not always reachable.

True

False

7)The categories of pricing objectives include all of the following except:

Fashion -oriented

Status Quo

Profit-oriented

Sales-oriented

8)Fashion Marketers set prices based primarily on:

a) The amount competitors charge for similar goods. b)Manufacturer's suggested retail price. c)Customers perceived value of the product. d)Cost of the product plus transportation and profit.

9)Both fixed and variable costs change with the amounts of goods sold.

True

False

10)When a camera manufacturer learns that its competitor is charging a lower price for a camera with similar features and reduces the price to meet the competition, the pricing tactic is:

a)Status quo pricing

b)Revenue enhancement

c)Return on investment (ROI)

d)Sales maximization