The companies that perform in competitive markets using the pricing approach are known as ___________?
Correct answer: B. market based approach
- A. independent revenue approach
- B. market based approach
- C. dependent revenue approach
- D. cost based approach
Explanation
In a competitive market, competitors and market conditions strongly constrain the price, so companies use a market-based pricing approach. Cost-based pricing is more suitable where the company has greater pricing freedom.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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