Cost-Led Pricing Refers to Which of the Following Pricing Calculations

question 35

Multiple Choice

Cost-led pricing refers to which of the following pricing calculations?

• A)calculating the cost of manufacturing and delivering the product and adding a profit margin
• B)calculating the cost based on how much profit you have targeted in your business plan
• C)calculating the price based on the maximum price a customer will pay
• D)calculating the price based on competitive products

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Definitions:

Variable Costing

A costing method that includes only variable production costs in product cost calculations, used for internal decision-making.

Net Income

The excess of all revenues and gains over all expenses and losses for a specific period of time.

Production

The process of creating goods and services from various resources.

Sales Volumes

The total amount of a product sold within a specific period of time.