What Is a Critical Reason for a Company to Use

question 19

Multiple Choice

What is a critical reason for a company to use cost-plus pricing?

• A)The company has significant differences between its variable and fixed costs.
• B)The company's suppliers have recently increased prices.
• C)The company operates in a highly competitive market.
• D)The company operates in a less competitive market.

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Definitions:

Psychological Reactance

A reaction against perceived attempts to limit one's freedom or autonomy, often resulting in a desire to regain that freedom.

Psychological Description

Description of a product or service in terms of audience benefits.

Factual Appeal

A persuasive strategy that uses facts, statistics, and objective information to influence the audience's opinion.

Transition

The process or a period of changing from one state or condition to another in various contexts, such as personal life, work, or technology.