Despite Its Weaknesses, Markup Pricing Remains Popular for Which of the Following

question 17

Multiple Choice

Despite its weaknesses, markup pricing remains popular for which of the following reasons?

• A) Sellers can determine demand much more easily than they can estimate costs.
• B) By tying the price to cost, the pricing task becomes more sophisticated.
• C) When all firms in the industry use markup pricing, price competition flourishes.
• D) Sellers take advantage of buyers when the latter's demand becomes acute.
• E) Many people feel that cost-plus pricing is fairer to both buyers and sellers.

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Definitions:

Control

The process of directing, monitoring, and adjusting resources and operations to achieve certain objectives.

Actual Performance

The real, observed results achieved by an organization or individual, contrasted with planned or expected performance.

Expand Activities

The process of increasing the scope, reach, or scale of a company's operations or projects.

Management Accounting

This entails the generation of reports and financial statements for management, containing up-to-date and accurate financial and statistical details essential for supervisors to make decisions on a daily and short-term basis.