All of the Following Are Correct Statements About the Cost-Plus

question 100

Multiple Choice

All of the following are correct statements about the cost-plus pricing approach except that it

• A) is simple to compute.
• B) considers customer demand.
• C) includes only variable costs in the cost base.
• D) will only work when the company sells the quantity it budgeted.

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Definitions:

Skimming

A pricing strategy in which a high price is set for a new product to “skim” off customers willing to pay a premium before lowering the price to attract a broader market.

Demand-oriented

An approach to pricing, production, and marketing that focuses on the demand levels and preferences of consumers.

Approximate Price

An estimated cost given for a product or service, offering a ballpark figure that may not account for detailed specifics or potential changes.

Bundle

A marketing strategy that involves offering several products or services together as a combined package, usually at a lower price than they would cost individually.