Author Question: UVW Industries is in a business in which competition demands little variance in pricing so it prices ... (Read 105 times)

Engineer · **on:** Jul 14, 2018

UVW Industries is in a business in which competition demands little variance in pricing so it prices its products to stay at the same level of business it has enjoyed in order to maintain price stability. This is known as
A) status-quo pricing.
B) target return on investment pricing.
C) profit maximization.
D) ground floor pricing.

Question 2

When does a firm incur holding costs? When does it incur stock-out costs?

patma1981 · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

A

Answer to Question 2

Holding costs, or storage costs, are incurred when a purchased item arrives and must be stored as inventory. Stock-out costs are the cost a business experiences when it runs out of inventory. That cost occurs when an item is not physically in stock in inventory.