Which of the Following Is True of Value-Based Pricing

question 131

Multiple Choice

Which of the following is true of value-based pricing?

• A) The targeted value and price drive decisions about what costs can be incurred and the resulting product design.
• B) Value-based pricing is mostly product driven.
• C) Value-based pricing involves setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for its effort and risk.
• D) The marketer usually designs a product and marketing program and then sets the price.
• E) A company using value-based pricing designs what it considers to be a good product, adds up the costs of making the product, and sets a price that covers costs plus a target profit.

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Definitions:

Routing

Phase of production control that determines the sequence of work throughout the facility and specifies who will perform each aspect of production at what location.

Production Control

The process of planning, coordinating, and controlling the manufacturing or production process in an organization.

Gantt Chart

A visual project management tool that outlines a project schedule, showing the start and finish dates of various elements.

Production Control

The activity of planning, coordinating, and controlling the manufacture process from raw materials to finished product delivery.