Asked by
Jennifer Rivera
on Oct 30, 2024
Verified
Cost-led pricing refers to which of the following pricing calculations?
A) calculating the cost of manufacturing and delivering the product and adding a profit margin
B) calculating the cost based on how much profit you have targeted in your business plan
C) calculating the price based on the maximum price a customer will pay
D) calculating the price based on competitive products
Cost-Led Pricing
A pricing strategy that involves calculating all the costs involved in producing a product and then adding a markup to ensure profitability.
Profit Margin
A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, highlighting the profitability of a business or product.
- Distinguish between pricing strategies that are driven by cost and those that are oriented around value.
Verified Answer
MC
Learning Objectives
- Distinguish between pricing strategies that are driven by cost and those that are oriented around value.
Related questions
Consider the Following Statements Regarding Cost-Plus Pricing Formulas ...
Which of the Following Statements Regarding Absorption Cost Pricing Formulas ...
Which of the Following Statements Regarding Cost-Plus Pricing Is/are True ...
A Practical Approach That Is Frequently Used by Managers When ...
What Pricing Concept Considers the Price That Other Providers Charge ...