The pricing strategy in which prices are based on cost of distribution and production plus fair return rate is classified as?
Correct answer: A. cost based pricing
- A. cost based pricing
- B. differentiated pricing
- C. competitive pricing
- D. value added pricing
Explanation
Cost-based pricing starts with production and distribution costs and adds a markup or fair return to determine the selling price. Competitive pricing instead begins with competitors' prices, while value-based pricing begins with customers' perceived value.
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