Which of the Following Is an Advantage of Using Cost-Based

question 88

Multiple Choice

Which of the following is an advantage of using cost-based pricing methods?

• A) They consider external factors such as competition.
• B) They include consideration of the effects of demand.
• C) They are relatively simple to calculate.
• D) They make accurate cost estimating a simple process.
• E) They take the product life cycle into consideration.

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Definitions:

Price

The amount of money or its equivalent required to purchase a product, service, or asset.

Macaroni Salad

A type of salad typically made from cooked macaroni pasta and a variety of other ingredients, mixed in a mayonnaise-based dressing.

Quarts

A unit of liquid volume measurement in the United States, equivalent to a quarter of a gallon or approximately 0.946 liters.

Delicatessen

A retail establishment that sells a selection of fine, unusual, or foreign prepared foods, including meats, cheeses, and specialty dishes.