Pricing for a Service Should Primarily Relate to the Cost

question 31

True/False

Pricing for a service should primarily relate to the cost of providing the service and has little to do with capacity issues the service provider might face.

---

Definitions:

Zero-based Budgeting

A budgeting approach where all expenses must be justified for each new period, starting from a "zero base," without reference to previous budgets.

Budget Cycle

The budget cycle describes the periodic process of planning, preparation, approval, and review of a budget, encompassing stages from proposal to implementation and subsequent analysis.

Flexible

The quality of being able to adapt to changes or new circumstances easily without significant disruption.

Strategic Plans

Long-term, overarching plans designed to achieve essential goals within an organization, guiding its direction, and decisions.