The companies that perform in less competitive markets and their market offerings significantly differ are classified as ___________?
Correct answer: C. cost based approach
- A. independent revenue approach
- B. market based approach
- C. cost based approach
- D. dependent revenue approach
Explanation
Cost-based pricing is commonly used where competition is limited and products differ substantially, because the company has greater control over its price. Market-based pricing is more typical when strong competition constrains the selling price.
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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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