Asked by Greyson Grubb on May 08, 2024
Verified
The cost approach to pricing:
A) is the only defensible pricing mechanism for ethical companies to use.
B) implies that prices are set based on the cost the market will bear.
C) means prices are adjusted to ensure the selling organization recoups all costs.
D) implies that cost analysis is the only technique to be used to negotiate prices.
E) means prices are set to cover direct costs,contribute to indirect costs,and provide a profit.
Cost Approach
An evaluation method that estimates the value of an asset based on the cost to replace or reproduce it.
Ethical Companies
Businesses that operate in ways that are considered morally right, adhering to principles of fairness, honesty, and respect for people and the planet.
Recoups All Costs
A situation where the total expenses of an investment or project are fully recovered.
- Comprehend the cost approach to pricing and its implications for ethical pricing strategies.
Verified Answer
Learning Objectives
- Comprehend the cost approach to pricing and its implications for ethical pricing strategies.
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