4.5.3—Pricing methods Topic Practice
4.5.3—Pricing methods Topic Practice
Students practise explaining advantages and disadvantages of cost-plus, price-skimming, and other pricing strategies—always tied to a business’s costs, competition, or market…
How this is tested
- explain one advantage and one disadvantage of cost-plus pricing by calculating mark-up coverage of rising input
- justify suitability of price skimming for a new product launch by weighing early premium revenue against risk