Multiple Choice
In spite of its failure to account for customer value or customer demand, cost- plus pricing remains one of the most popular methods of price setting. Which of the following statements BEST accounts for its continued currency?
A) It enables sellers to earn a fair return on investment.
B) Sellers simplify the pricing decision using cost- plus approaches.
C) Sellers are more confident about costs than demand or value.
D) In markets where cost- plus pricing is widely practised, cost- plus results in competitors charging similar prices.
E) All of the above are reasons for the widespread use of cost- plus pricing methods.
Correct Answer:
Verified
Correct Answer:
Verified
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