CPP Cheat Sheet 2026

The 30 highest-yield CPP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. When a company uses absorption costing instead of variable costing, which cost is included in product cost? → Fixed manufacturing overhead
2. A client requests advice on implementing a price increase for long-term contract customers. What is the most important advisory consideration? → Contractual escalation clauses and the timing relative to renewal cycles
3. In Economic Value Estimation (EVE), the 'differentiation value' component represents: → The monetary worth of features that are better or worse than the reference competitor
4. In a B2B context, which customer segmentation variable is MOST aligned with identifying willingness to pay for a pricing analysis? → Economic value delivered to the customer's business
5. Which pricing model is most aligned with a 'good-better-best' product line strategy? → Versioning / tiered pricing
6. Which of the following is an example of a fencing mechanism used to enforce price segmentation? → Requiring proof of student status to access a discounted price
7. How often should a practitioner review applicable regulations and standards? → Regularly, as regulations are updated frequently and compliance is ongoing
8. A U.S. company bribes a foreign government official to secure a favorable pricing contract. Which law is most directly violated? → Foreign Corrupt Practices Act (FCPA)
9. How does competitor-based pricing work? → Setting the price based on competitors' prices.
10. What role does cash flow management play in financial health? → It ensures adequate liquidity to meet obligations and fund operations
11. A pricing manager receives a call from a competitor's sales director asking about planned price changes for next quarter. The correct response is to: → Immediately terminate the conversation and report it to legal counsel
12. Which U.S. statute specifically prohibits bid rigging and price fixing in public procurement as criminal violations? → Sherman Antitrust Act Section 1
13. Under the EU Omnibus Directive (2022), retailers must display a reference price in promotional offers based on: → The lowest price charged in the 30 days prior to the promotion
14. Which negotiation strategy focuses on creating additional value for both parties rather than dividing a fixed amount? → Integrative negotiation
15. Which analysis technique plots a product's market share against market growth rate to inform pricing and investment decisions? → BCG Growth-Share Matrix
16. A pricing analyst is evaluating a 'what-if' scenario where price is raised 8% and elasticity is -1.5. What volume change is expected? → -12%
17. A client asks whether to use penetration pricing or skimming pricing for a new product launch. Which factor most strongly determines the right choice? → The speed of competitor imitation and the price elasticity of the target segment
18. A revenue manager evaluates 'displacement cost' when deciding whether to accept a group booking at a discounted rate. Displacement cost represents: → The revenue forgone from individual transient customers displaced by the group block
19. A company sets prices below average variable cost in a market it dominates with the intent to eliminate a competitor. This is best described as: → Predatory pricing
20. Which segmentation approach divides customers based on their actual purchasing behavior, usage rates, and brand loyalty? → Behavioral segmentation
21. In a two-part tariff pricing model, revenue comes from: → A fixed access fee plus a variable usage charge
22. A consumer who paid $500 for a non-refundable concert ticket attends despite feeling ill because 'I already paid.' This behavior exemplifies: → Sunk cost fallacy
23. A company operating in the EU must comply with which major regulation that restricts how it collects and uses customer data to personalize prices? → General Data Protection Regulation (GDPR)
24. What does a 'competitive parity' pricing strategy mean? → Setting prices equal to or in line with the primary competitor
25. Which entity typically has authority to establish practice standards? → State licensing boards and professional regulatory bodies
26. Which competency is most essential for professionals working in dynamic pricing & revenue management? → Comprehensive knowledge combined with practical application skills
27. In a negotiation context, the party that makes the first offer typically: → Sets a powerful anchor that biases the final settlement toward their number
28. A SaaS company charges $10/month for up to 5 users and $18/month for up to 15 users. This is an example of which pricing structure? → Tiered pricing
29. Overbooking in airline and hotel revenue management is justified because: → It maximizes load factor when cancellations and no-shows are predictable
30. A consumer buys a coat for $300 but feels fine spending $30 on a hat the same day. From a mental accounting perspective, this most likely occurs because: → The hat represents a separate mental account with a lower budget ceiling