The Cost Approach to Pricing

question 5

Multiple Choice

The cost approach to pricing:

• A)is the only defensible pricing mechanism for ethical companies to use.
• B)implies that prices are set based on the cost the market will bear.
• C)means prices are adjusted to ensure the selling organization recoups all costs.
• D)implies that cost analysis is the only technique to be used to negotiate prices.
• E)means prices are set to cover direct costs,contribute to indirect costs,and provide a profit.

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Definitions:

Raise Money

The act of collecting funds for a purpose, which can involve various methods such as loans, investments, or donations.

Professional Baseball

A sport involving teams that play baseball at the highest skill level for monetary compensation, often within an organized league structure.

Franchises

Business models where a franchisor licenses trademarks and methods to a franchisee in exchange for a recurring payment and possibly a percentage of gross sales or profits.

Categories

Categories represent classifications or groups of items that share common characteristics or attributes.