Which cost-oriented pricing method is based on the recognition that a product's unit costs predictably decline by 10 to 30 percent each time its production volume doubles?
A) experience-curve pricing
B) cost-plus-percentage-of-cost pricing
C) capacity management pricing
D) standard markup pricing
E) derived demand pricing

Question

Quizplus · Accepted Answer

Experience-curve pricing is based on the concept that as a company gains experience in producing a product, the unit cost of production decreases by a predictable percentage (typically 10 to 30 percent) each time the production volume doubles.

Which Cost-Oriented Pricing Method Is Based on the Recognition That