Establishing a base price for producing and delivering a standard quantity of each standard product is an example of:
A)process improvements.
B)activity based pricing.
C)managing relationships.
D)the pricing waterfall.

Question

Quizplus · Accepted Answer

Establishing a base price for producing and delivering a standard quantity of each standard product is an example of activity-based pricing which is a cost accounting method that identifies activities in the organization and assigns the cost of each activity to all products and services based on the resources consumed. It helps in determining the most accurate cost of production and therefore a fair price for the product.

Establishing a Base Price for Producing and Delivering a Standard