What Are the Two Basic Tools Used in Price-Setting

question 38

Multiple Choice

What are the two basic tools used in price-setting?

• A) Profit maximization and market share
• B) Advertising and sales promotion
• C) Cost-oriented pricing and break-even analysis
• D) Cost-oriented pricing and profit maximization
• E) Cost-oriented pricing and market share

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Definitions:

Sales Values

The total revenue generated from goods or services sold by a business.

Direct Costs

Expenditures directly traceable to the production of specific goods or services, such as raw materials and labor.

Gross Margins

The difference between revenue and cost of goods sold divided by revenue, expressed as a percentage, indicating the financial health and profitability of a business.

Value Basis

The underlying worth of an asset from which sale prices or depreciation is derived.