Advertisements
Advertisements
प्रश्न
State two disadvantages of Cost plus pricing policy.
Advertisements
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.
संबंधित प्रश्न
Which pricing strategy involves charging according to their competitors?
It is also known as 'going rate pricing' or competition based pricing.
Markup pricing is also called as ______.
Setting a price below than that of the competition is called ______.
Under this Pricing Strategy, a business firm adjusts its own price policy in accordance with general pricing structure in the industry.
Selling price = Total cost per unit + Desired profit per unit is the formula to fix prices under which Pricing Strategy?
The pricing strategy involves charging according to what competitors are charging ______.
Skimming pricing policy is ideal for introducing a product in the FMCG sector. Justify for or against.
What is Cost plus pricing policy?
Discuss the pros of Penetrating Pricing Policy.
