Which of the Following Is a Cost-Oriented Approach to Pricing

question 213

Multiple Choice

Which of the following is a cost-oriented approach to pricing?

• A)cost-plus pricing
• B)skimming pricing
• C)prestige pricing
• D)loss-leader pricing
• E)bundle pricing

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Definitions:

Depreciation

This is the systematic allocation of the cost of a tangible asset over its useful life. It reflects the consumption of the asset over time.

Tax Bill

A tax bill is an official statement from a governmental authority specifying the amount of taxes owed by an individual or organization for a certain period.

Net Cash Flow

The amount of cash that is generated or lost by a business in a given period, after accounting for all cash inflows and outflows related to operational, investing, and financing activities.

Statement of Cash Flows

The statement of cash flows is a financial report that outlines the cash inflows and outflows from operating, investing, and financing activities, indicating how a company generates and uses cash.