Which of the Following Is an Advantage of the Demand-Oriented

question 58

Multiple Choice

Which of the following is an advantage of the demand-oriented method of pricing?

• A) it allows retailers to determine which price will provide the greatest profit
• B) it is the perfect method when there are many SKUs to price
• C) it opens the doors to the profit maximization process
• D) it is hard to implement
• E) it keeps the retailer in line with competitors' prices

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Definitions:

Specific Process

A distinct method or sequence of steps designed to achieve a particular outcome in manufacturing or another operational environment.

Labor Costs

The total amount of money a business spends on employment, including wages, salaries, and benefits.

Materials

The raw substances or components used in the manufacturing or production of goods.

Hybrid Costing System

A costing system that blends elements of both job costing and process costing methods, suitable for industries that manufacture items in batches.