American Association of Family and Consumer Sciences (AAFCS) Practice Test

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What is unit pricing?

  1. A method of evaluating overall product quality

  2. A practice of indicating price based on cost per unit

  3. A pricing strategy that ignores quantity discounts

  4. A comparison of prices across different brands

The correct answer is: A practice of indicating price based on cost per unit

Unit pricing is a pricing practice that provides consumers with the cost per unit of measurement (such as per ounce, pound, liter, etc.) for a product. This method helps shoppers compare the value of different sizes and brands of products, making it easier to determine which option provides the best overall value. For instance, if one brand sells a bottle of shampoo for $4 for 12 ounces and another sells it for $5 for 16 ounces, the unit pricing indicates that the second brand has a lower cost per ounce, allowing consumers to make informed choices based on price efficiency. While evaluating overall product quality, considering quantity discounts, or comparing prices across different brands can be important factors in shopping, they are not the definition of unit pricing. Unit pricing specifically relates to breaking down the total price into a cost-per-unit measure that directly informs purchasing decisions based on price efficiency.