MKT 402 – Marketing Pricing “ Week 7 “ Discussion Question 2 :

“Applying Costs” Please respond to the following:

• Determine the industries you believe most frequently use activity-based costing and explain why.
• Analyze the “Peak Pricing: An Application of Incremental Costing” from Chapter 9 example and compare this example of peak and off-peak pricing to a local electricity provider and its pricing strategy. In your comparison, argue whether your local company is more or less profitable when implementing the type of pricing strategy it is using.