A cost-based approach to determining price is appropriate for all purchased items.

Question

Quizplus · Accepted Answer

A cost-based approach to determining price may not be appropriate for all purchased items. In some cases, the market demand and competition may play a bigger role in determining the price of the product. For example, luxury items may have a higher price tag despite the lower production costs. Additionally, some products may have intangible value such as unique design or brand reputation, which can result in a higher price tag.

A Cost-Based Approach to Determining Price Is Appropriate for All