Which of the following statements concerned with pricing is not true?
A) Some entities may use an average cost that includes both fixed and variable costs for cost-based pricing.
B) Cost-based prices are difficult to calculate.
C) Where an entity is selling a unique product, it will set the price at the maximum amount bearable by the market.
D) Market-based pricing is based on competition in the market place.

Question

Quizplus · Accepted Answer

Cost-based prices are not difficult to calculate. They are determined by adding a markup to the cost of producing a product or service, which typically involves straightforward calculations of costs and desired profit margins.

Which of the Following Statements Concerned with Pricing Is Not