Question 1

**Section A**

A software startup has developed a revolutionary AI-driven video editing tool. There are currently no direct competitors. The company needs to recover its high initial development costs quickly before competitors enter the market in 12-18 months.

Which pricing strategy is MOST appropriate for this product?

Accepted Answer

Match the scenario (high R&D, short monopoly period) to the strategy that maximizes early cash flows.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Confusing skimming with penetration. Penetration is used to gain mass market share quickly with low prices.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA PM — Performance Management Practice Exam 6

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