Which of the Following Is Not an Item or Product

question 47

Multiple Choice

Which of the following is not an item or product that is an appropriate candidate for a cost-based pricing approach?

• A)An item in which the seller contributes high added value through direct or indirect labor and specialized expertise.
• B)A complex item customized to specific requirements.
• C)A product requiring a conversion from raw material through value-added designs at a supplier.
• D)A product requiring supplier-provided design and engineering support.
• E)Commodity-like items.

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Definitions:

Binomial Probability

The probability of obtaining a specific number of successes in a fixed number of independent trials, with two possible outcomes.

Success

The accomplishment of an aim or purpose.

Probability Distribution

A function that describes the likelihood of obtaining the possible values that a random variable can assume.

Expected Value

The long-run average value of a random variable over numerous trials, a fundamental concept in probability.