Which of the Following Statements Is True of Cost-Based Pricing

question 1

Multiple Choice

Which of the following statements is true of cost-based pricing?

• A)It determines price by adding a fixed margin to the per-unit cost of the product.
• B)It determines the price based on the amount consumers are willing to pay for a product.
• C)It is an interesting theoretical approach to pricing, but it is seldom used in the real world.
• D)It is obtained by subtracting the desired margin, which yields the target costs.

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Definitions:

Individuality Corollary

A principle that acknowledges the uniqueness of each individual's perception and understanding of the world, as proposed by George Kelly's personal construct theory.

Kelly's

Pertains to George Kelly's Personal Construct Theory, which focuses on how people create constructs as mental models to interpret the world.

Opinions

Beliefs or judgments that are not based on certainty or knowledge but rather on what one thinks or feels to be true or probable.

Neurotic Behavior

Patterns of thinking, feeling, and behaving that are maladaptive, self-defeating, and indicative of some form of psychological distress.