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Pricing is a problem in four general types of situations:
1) When the firm develops or introduces a new product and it is fix the price of the product for the first time.
2) When circumstances so develop that lead the firm to consider initiating a price change.
3) When company produces several products that have interrelated demands and costs.
4) When the company produces several products that have price change.
WHY VARIANCES IS INVESTIGATED UNDER STANDARD COSTING
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Airlines give away millions of tickets each year through their frequent flyer programs, with the typical airline awarding a free ticket for each 25,000 miles flown on the airline.
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