To minimize the chances of violating pricing laws, a company should ________.
A) keep detailed records of variable costs for all value-chain business functions
B) use a variable cost-plus markup method of pricing
C) underprice products on a consistent basis, rather than sporadically
D) use dumping only when a product is at the end of its life cycle

Question

Quizplus · Accepted Answer

Keeping detailed records of variable costs for all value-chain business functions helps ensure that the pricing of products or services is in compliance with pricing laws. This allows the company to accurately calculate pricing without violating pricing regulations. Using a variable cost-plus markup method (B) is also helpful, but it is still important to track all variable costs. Underpricing products on a consistent basis (C) is not a good strategy as it can lead to financial losses, and dumping a product (D) can violate fair trade laws.

To Minimize the Chances of Violating Pricing Laws, a Company