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Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663

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BuyFindarrow_forward

Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663
Chapter 18, Problem 5DQ
Textbook Problem
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What is the difference between penetration pricing and price skimming?

To determine

Explain the difference between penetration pricing and price skimming. 

Explanation of Solution

The difference between penetration pricing and price skimming are as follows:

Basis of distinctionPenetration pricingPrice skimming
MeaningPenetration pricing is a pricing policy in which the price of a product is fixed at a lower cost at the initial stage.Price skimming is a pricing policy in which the price of a product is fixed at a higher cost in the introductory stage...

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Chapter 18 Solutions

Cornerstones of Cost Management (Cornerstones Series)
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