Which of the Following Statements Regarding Cost-Oriented Approaches Is Most

question 138

Multiple Choice

Which of the following statements regarding cost-oriented approaches is most accurate?

• A)These methods focus on the demand side of the pricing problem; they involve stimulating demand and decreasing revenue.
• B)These methods focus on the cost side of the pricing problem; they involve considerations of production and marketing expenses.
• C)Target return on investment is an example of a cost-oriented method.
• D)Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production.
• E)Cost-oriented approaches are subcategories of competition-oriented methods so revenues are a critical factor.

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