Which of the Following Statements About Cost-Oriented Approaches Is True

question 80

Multiple Choice

Which of the following statements about cost-oriented approaches is true?

• A)These methods focus on the demand side of the pricing problem and involve stimulating demand and decreasing revenue.
• B)In the cost-based approaches, price is set by looking at the production and marketing costs and then adding enough to cover direct expenses, overhead, and profit.
• C)Target return on investment is an example of a cost-based method.
• D)Experience curve pricing, a type of cost-based approach, is simple to use because costs predictably decrease by 25 percent with each doubling of production.

---

Definitions:

Invasion of Privacy

The unauthorized intrusion into the personal life of an individual without just cause, which can lead to discomfort, harm, or distress.

Tests

Standardized methods or instruments designed to measure skills, knowledge, abilities, or traits.

Forensic Evaluations

A specialized type of assessment often used in a court of law that requires the author to testify as an expert witness. The assessing examiner frequently collects information from interviews, testing, and the reviewing of supplemental records.

Expert Witness

A professional who is permitted to testify in court because of special knowledge or proficiency in a particular field relevant to the case.