A method for setting prices that determines the total expense of possessing a product over its useful life is called the:
A)improvement value method.
B)supply-based method.
C)demand-based method.
D)premium pricing method.
E)cost of ownership method.

Question

Quizplus · Accepted Answer

The cost of ownership method takes into account not only the initial purchase price but also the costs associated with owning and maintaining a product over its useful life. This can include expenses such as repairs, maintenance, and operating costs. By considering the total cost of ownership, a company can set a price that accurately reflects the value of the product to the customer while also ensuring a reasonable profit margin.

A Method for Setting Prices That Determines the Total Expense