Cost-based pricing assumes costs
A) vary with the level of prices.
B) are used to estimate value.
C) will not vary much for different levels of production.
D) are calculated based on historical consumer perceptions of what things should cost.
E) will continue to decrease as production increases.

Question

Quizplus · Accepted Answer

Cost-based pricing assumes that costs will not vary much for different levels of production. This means that pricing decisions are based on the production cost of the product or service rather than its perceived value or what consumers are willing to pay.

Cost-Based Pricing Assumes Costs