Relevant costs for pricing decisions include manufacturing costs, but not costs from other value-chain functions.

Question

Quizplus · Accepted Answer

Relevant costs for pricing decisions include not only manufacturing costs, but also costs from other value-chain functions such as marketing, distribution, and customer service. The total cost of producing and delivering a product or service should be taken into account when setting a price.

Relevant Costs for Pricing Decisions Include Manufacturing Costs, but Not