The Pricing Method That Is Used Primarily by Service Businesses

question 28

Multiple Choice

The pricing method that is used primarily by service businesses is

• A)return on assets pricing.
• B)gross margin pricing.
• C)target cost pricing.
• D)time and materials pricing.

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Definitions:

Reserved Capacity

A business strategy where a portion of production capability or service availability is set aside for a particular customer or project.

Revenue Management

Is the practice of strategically controlling inventory and pricing to maximize revenue, commonly used in industries like hotels, airlines, and hospitality.

Available Supply

The quantity of goods or materials in stock that is ready to be sold or distributed.

Maximize Profits

Maximizing profits is the strategic goal of increasing a company's earnings to its highest possible level by optimizing revenue streams and reducing costs.