Which of the following is NOT one of the four main approaches for selling goods and services to external parties? View the Video

Fixed-cost pricing

Target costing

Variable-cost pricing

Cost-plus pricing

What is a disadvantage of using variable-cost pricing? View the Video

Variable costs wont be covered if prices are set too low.

Prices change daily.

Both Fixed costs wont be covered if prices are set too low and Variable costs wont be covered if prices are set too low.

Fixed costs wont be covered if prices are set too low.

What types of businesses would use time-and-material pricing? View the Video

Accountants

All of the these answer choices.

Lawyers

Engineers

When does it make sense to use variable-cost pricing? View the Video

When demand exceeds supply.

When pricing special orders or when excess capacity exists.

When pricing special orders.

When excess capacity exists.