Which Approach to Pricing Is Most Suitable When a Company

question 54

Multiple Choice

Which approach to pricing is most suitable when a company has high variable costs relative to its fixed costs?

• A) full-cost pricing
• B) marginal-cost pricing
• C) static-cost pricing
• D) demand-based pricing
• E) premium pricing

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Definitions:

Long-Term Goals

Objectives or targets that are planned to be achieved over an extended period, focusing on future aspirations and strategic outcomes.

Frequent Feedback

The process of giving regular, prompt responses or assessments regarding performance, behavior, or learning, aimed at improvement and development.

Goal-Setting Theory

A motivational theory that suggests setting specific and challenging goals, along with appropriate feedback, enhances performance.

Down Payment

An initial, upfront partial payment for the purchase of expensive items such as a home or car, typically representing a percentage of the total purchase price.