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प्रश्न
State two disadvantages of Cost plus pricing policy.
थोडक्यात उत्तर
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उत्तर
- It is very often difficult to determine accurately the cost per unit due to common overheads and joint products. The method involves arbitrary allocation of costs in such cases.
- The method ignores the nature and level of demand. The resulting price may, therefore, be out of line with market conditions.
- It fails to reflect competition in the market.
- The mark-up on the cost of the product is not fixed but may change with changes in demand. In practice, the rule of thumb methods are used to determine the mark-up.
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Price - Pricing Strategies
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
संबंधित प्रश्न
Explain the below mentioned pricing strategy:
Skimming pricing strategy
The strategy of introducing new product in existing market is classified as ______.
Markup pricing is also called as ______.
Selling price = Total cost per unit + Desired profit per unit is the formula to fix prices under which Pricing Strategy?
Factors which do not influence price determination is ______.
What is skimming pricing?
In a competitive market, parity pricing is the appropriate strategy. Justify either for or against.
What is Cost plus pricing policy?
What is penetrating pricing?
What pricing strategy will be used to launch shampoo?
