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Questions
Mention the advantages of cost plus pricing.
State two advantages of Cost plus pricing policy.
Solution
- Cost plus pricing is the most widely used technique of pricing. It is a safe approach to pricing. It ensures full coverage of costs and helps in achieving a reasonable return on capital employed.
- The method is logical and can be defended on moral grounds. It discourages cut-throat competition in the market.
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RELATED QUESTIONS
Which pricing strategy involves charging according to their competitors?
Explain the below mentioned pricing strategy:
Skimming pricing strategy
It is also known as 'going rate pricing' or competition based pricing.
The strategy of introducing new product in existing market is classified as ______.
Introducing a product at low price and increasing the price once the brand succeeds is known as ______ pricing.
Factors which do not influence price determination is ______.
______ determines the sales volume and the profit margins.
What is Cost plus pricing policy?
State two disadvantages of Cost plus pricing policy.
Identify two desirable conditions under penetrating pricing.
