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

Correct Answer: product-cost cross subsidizing

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.
Bissoy MCQ
#Commerce #Costing

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A 1:2
B 2:3
C 3:4
D 1:5
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B contributed risk
C irrelevant risk
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