________ Uses Buyers' Perceptions of What a Product Is Worth

question 11

Multiple Choice

________ uses buyers' perceptions of what a product is worth as the key to pricing.

• A) Customer value-based pricing
• B) Target return pricing
• C) Cost-plus pricing
• D) Psychological pricing
• E) Competition-based pricing

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Definitions:

Variable Costing

An accounting method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overheads - in product costs.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Full Costs

This refers to the comprehensive total amount that includes all relevant costs of production, including direct, indirect, fixed, and variable costs.