What Are the Two Common Cost-Oriented Pricing Methods

question 89

Multiple Choice

What are the two common cost-oriented pricing methods?

• A) marginal cost and marginal revenue pricing
• B) full-cost and incremental-cost pricing
• C) markup and markdown pricing
• D) profitability and volume pricing

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Definitions:

Implied Warranty Of Fitness

An assurance, not explicitly stated, that the goods sold will be suitable for the purpose for which the buyer intends to use them.

Express Warranty

An explicit guarantee made by a seller about the condition, quality, or performance of a product, forming part of the contract of sale.

Business Contracts

Legally binding agreements between two or more parties that outline the terms of business transactions.

Time Of Payment

The specific date or period as stipulated in a contract by which payment is due to be made.