The Trade-Off Between Time and Cost Is a Simple Process;

question 2

True/False

The trade-off between time and cost is a simple process; the time involved in a project can always be reduced by increasing cost.

---

Definitions:

Experience-curve Pricing

A pricing strategy that utilizes the cost savings gained from learned efficiency as production volume increases over time.

Cost-plus Pricing

A strategy for setting prices that involves adding a defined markup to the cost of each unit of a product.

Experience-curve Pricing

A pricing strategy that takes into account the reductions in unit costs as cumulative volume increases, due to gained efficiency and experience.

Experience-curve Pricing

A pricing strategy that lowers the cost of a product over time as the production processes become more efficient with experience.