Which of the following statements about cost-oriented approaches is true?
A)These methods focus on the demand side of the pricing problem and involve stimulating demand and decreasing revenue.
B)In the cost-based approaches, price is set by looking at the production and marketing costs and then adding enough to cover direct expenses, overhead, and profit.
C)Target return on investment is an example of a cost-based method.
D)Experience curve pricing, a type of cost-based approach, is simple to use because costs predictably decrease by 25 percent with each doubling of production.

Question

Quizplus · Accepted Answer

With cost-oriented approaches, a price is more affected by the cost side of the pricing problem than the demand side.Price is set by looking at the production and marketing costs and then adding enough to cover direct expenses, overhead, and profit.

Which of the Following Statements About Cost-Oriented Approaches Is True