The Contribution Approach to Pricing Involves All of the Following

question 27

Multiple Choice

The contribution approach to pricing involves all of the following EXCEPT

• A) it assumes a given volume level.
• B) it displays variable and fixed cost behaviour.
• C) it emphasizes cost-volume-profit relationships.
• D) it makes it easier for managers to prepare price schedules at different volume levels.

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Definitions:

Inseparability

Characteristic of services that highlights the simultaneous production and consumption, making it impossible to separate the service from the service provider.

Service Provider

A company or entity that offers services to consumers or other businesses.

Evaluate

To assess or judge the value, performance, or significance of something systematically.

Inseparability

A characteristic of services indicating that they are produced and consumed at the same time, making the separation of service delivery from its consumption impossible.