The major approaches to make decisions about pricing include ____________?
Correct answer: A. both a and c
- A. both a and c
- B. sunk cost
- C. cost based
- D. market based
Explanation
The two principal pricing approaches are market-based pricing, which starts with market conditions, and cost-based pricing, which starts with cost plus a markup. Hence both options a and c apply.
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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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