Ace the CPCA Challenge 2025 – Unleash Your Professional Power with Practice Questions!

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A measure that is weighted by product units sold while on discount and product units sold when no discount was present is called:

Promoted average price

Base price

Discount average price

Average price

The term that refers to a measure that incorporates both product units sold on discount and those sold at full price is known as the average price. This measure provides a comprehensive understanding of pricing dynamics by weighing the contributions from both discounted and non-discounted sales, thus offering a clearer picture of profitability and revenue generation over a certain period.

In essence, average price effectively calculates the total revenue generated divided by the total units sold, without distinguishing between the sales that occurred during discount periods and those that did not. This holistic approach allows businesses to make informed decisions regarding pricing strategies, promotions, and inventory management, as it reflects the overall market conditions and consumer behavior.

On the other hand, promoted average price typically focuses on the sales that happened during promotional events, while base price refers to the standard selling price without discounts. Discount average price would specifically look at products sold at a discount, which does not provide the full picture as the average price does. Therefore, the average price is the most suitable measure in this context as it encompasses both aspects of pricing.

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