Managers do not believe that basing prices on the full cost of the product promotes price stability because it limits the ability and temptations of salespeople to cut prices.

Question

Quizplus · Accepted Answer

Basing prices on the full cost of the product promotes price stability as it ensures that all costs are covered and a fair profit is made. This approach also allows for better planning and budgeting. It is not the responsibility of salespeople to determine pricing, but rather the management team.

Managers Do Not Believe That Basing Prices on the Full