Which Statement Below Is the Most Correct About the Cost-Plus

question 3

Multiple Choice

Which statement below is the most correct about the cost-plus approach to pricing?

• A) There is considerable pressure to get rid of unnecessary costs.
• B) There is a risk that product developers will create products with expensive features that customers may not pay for.
• C) The cost of the product is determined by working backwards from the projected selling price.
• D) If the projected selling price is greater than 125% of the projected cost,the product will not be offered to customers.

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Definitions:

Local Economic Conditions

The state of the economy in a specific geographic area, including factors like employment rates, industrial output, and consumer spending.

Change Leadership

The ability to influence and inspire action in others towards achieving organizational transformations and adapting to new challenges.

Status Quo Management

A management approach focused on maintaining existing conditions and avoiding change.

Change Leaders

Individuals who actively guide, influence, and ensure the successful implementation of change processes within an organization.