98. While the most commonly used pricing method for business is cost-plus pricing, this method is becoming more and more popular among __________ in the service sector. A. e-businessesB. travel and tourism firmsC. small private companiesD. nonprofit organizationsE. business-to-business marketers 99. Which of the following businesses is most likely to use cost-plus percentage-of-cost pricing? 100. A pricing method where a supplier is reimbursed for all costs, regardless of what they may be, plus a set earlier-agreed-on dollar amount that is independent of the final cost of the project is referred to as 14-31
Chapter 14 - Arriving at the Final Price 101. The Brazilian government wants to build a global satellite transmission system. The manufacturer will receive $500,000 above actual development costs, whatever they may be. Payment to the manufacturer of the satellite transmission system will be determined using 102. Experience curve pricing refers to A. the method of pricing where price often rises following the reduction of costs associated with the firm's producing and selling an increased volume of the product.B. a method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10 percent to 30 percent each time a firms experience at producing and selling them doubles, resulting in possible rapid price reductions.C. the point at which profits double then double again as more consumers become familiar with the product.D. a predictive plan for pricing based upon the knowledge the prices will fluctuate, within any given industry, in a somewhat regular pattern.E. a pricing strategy that uses price estimates based upon the consensus of the most experienced members of the management team. 103. Which cost-oriented pricing method holds that a product's unit costs predictably decline by 10 to 30 percent each time the firm's production volume doubles?
Chapter 14 - Arriving at the Final Price
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