Which of the Following Statements Is True of Cost-Based Pricing

question 39

Multiple Choice

Which of the following statements is true of cost-based pricing?

• A) It determines the price by adding a fixed margin to the per-unit cost of a product.
• B) It determines the price based on the amount consumers are willing to pay for a product.
• C) It is seldom used in the real world.
• D) It is more market-focused than demand-based pricing.

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Definitions:

Data

Information collected for reference, analysis, or to inform decisions, often structured for easy access and study.

Customer-Satisfaction

The measure of how the goods or services supplied by a company meet or surpass customer expectation.

Experimentation

A process of trying out new ideas, processes, or products to test their efficacy, typically in a controlled setting to gather data and insights.

Ideas

Initial thoughts or concepts that can be developed into more detailed plans or creative projects.