Which Type of Pricing Approach with a Supplier Use in a Competitive

question 30

Multiple Choice

Which type of pricing approach with a supplier use in a competitive market?

• A)Cost plus.
• B)Target pricing.
• C)Target costing.
• D)Market price.

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Definitions:

Fixed Costs

Expenses that remain constant regardless of the amount of goods produced or sold, including lease payments, wage bills, and insurance fees.

Market Price

The existing rate at which an asset or service is offered for buying or selling.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the cost per unit of production.

Fixed Cost

Costs that do not change with the level of output or production, such as rent, salaries, and insurance.