Which of the Following Is True of the Value-In-Use Pricing

question 14

Multiple Choice

Which of the following is true of the value-in-use pricing method?

• A)The product price is set to provide customers with an attractive savings after considering the life-cycle costs of the product.
• B)The cost of making a product and the desired profit margin are the two primary determinants in setting a value-in-use price.
• C)Price is set by unbundling a product's features,placing a price on each,and then allowing customers to select the features they want at a price that they are willing to pay.
• D)It considers neither what the buyer would be willing to pay for product performance nor the cost of other similar products in the market.
• E)Price is set on the basis of the value that customers realize when they compare the price and benefits of the company's product with those of a key competitor's product.

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Definitions:

Liquidated

The process of converting assets into cash or paying off liabilities in the winding up of a business or partnership.

Reorganization Plan

A legal process designed to rapidly restructure a company's finances and operations with the aim of restoring its viability.

Plant Expansion

The process of increasing the physical size or production capacity of a manufacturing facility or plant.

Monetary Resources

Financial assets or liquid assets available to a business or individual, including cash, bank deposits, and investments.