Which of the Following Best Explains Market-Based Pricing

question 55

Multiple Choice

Which of the following best explains market-based pricing? 

• A) A particular profit margin is added to some costs, including the cost of sales. 
• B) The price of the product is determined by the market and is generated exclusively by market circumstances. 
• C) A fixed percentage mark-up is added to the cost price. 
• D) A 5% profit margin is added to the cost of sales.

---

Definitions:

Customer Tastes

Refers to the preferences, attitudes, and beliefs of consumers that influence their buying behavior for certain products and services.

Technology-Related

Pertaining to or involving technology, especially relating to advancements or applications in the field.

Commissions Earned

Income received by salespersons or brokers as a percentage of the sales they make, serving as motivation and compensation for their sales efforts.

Revenues

The total income generated by a company from its business activities.