List One Advantage and One Disadvantage for Each of the Following

question 109

Essay

List one advantage and one disadvantage for each of the following pricing methods: market-based and cost-based.

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Definitions:

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Days

Units of time consisting of 24 hours, often used to specify timeframes or durations.

Financial Data

Numerical data detailing a company's financial status, operations, and liquidity, utilized for evaluation and decision-making purposes.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the company.